Baltimore County Marylandmsa.maryland.gov/megafile/msa/speccol/sc5300/sc... · 16.12.2012 · The Reporting Entity And Its Services The County is a corporate polity which performs

Baltimore County Maryland

Comprehensive Annual Financial Report For The

Fiscal Year Ended June 30, 2010

Baltimore County, Maryland

Comprehensive Annual Financial Report

For The Fiscal Year Ended June 30, 2010

Prepared By The Office Of Budget and Finance

INTRODUCTORY

SECTION

COMPREHENSIVE ANNUAL FINANCIAL REPORT

BALTIMORE COUNTY, MARYLAND FOR THE YEAR ENDED JUNE 30, 2010

TABLE OF CONTENTS

I. INTRODUCTORY SECTION Letter of Transmittal III Organizational Chart XIII List of Principal Officials XIV GFOA Certificate of Achievement XVI II. FINANCIAL SECTION Independent Auditors’ Report 1 A. MANAGEMENT’S DISCUSSION AND ANALYSIS 3 B. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Assets 14 Statement of Activities 15 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet 16 Statement of Revenues, Expenditures and Changes in Fund Balances 17 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 18 Budgetary Comparison Schedule – General Fund 19 Proprietary Fund Financial Statements Statement of Net Assets 20 Statement of Revenues, Expenses, and Changes in Fund Net Assets 21 Statement of Cash Flows 22 Fiduciary Fund Financial Statements Statement of Fiduciary Net Assets 23 Statement of Changes in Fiduciary Net Assets 24 Component Units Financial Statements Statement of Net Assets 25 Statement of Activities 26 Notes to Basic Financial Statements 27

C. REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress – Employees’ Retirement System 66 Schedule of Employers’ Contribution – Employees’ Retirement System 66 Schedule of Funding Progress – Other Post Employment Benefit (OPEB) Trust 67

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COMPREHENSIVE ANNUAL FINANCIAL REPORT BALTIMORE COUNTY, MARYLAND

FOR THE YEAR ENDED JUNE 30, 2010 TABLE OF CONTENTS

(continued)

D. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES – SUPPLEMENTARY INFORMATION

Governmental Funds Schedule of Appropriations and Expenditures – Budgetary Basis – General Fund 70 Combining Balance Sheet – Nonmajor Governmental Funds 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 77 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budgetary Basis – Liquor License Fund 78 Internal Service Funds Combining Statement of Net Assets 79 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 80 Combining Statement of Cash Flows 81 Fiduciary Funds Combining Statement of Fiduciary Net Assets – Benefits Trust Funds 82 Combining Statement of Changes in Fiduciary Net Assets – Benefits Trust Funds 83 III. STATISTICAL SECTION Financial Trends Net Assets by Component 85 Changes in Net Assets 86 Fund Balances of Governmental Funds 88 Changes in Fund Balances of Governmental Funds 89 Unreserved Fund Balance and Revenue Stabilization Reserve Account Expressed as a Percentage of General Fund Revenues and Transfers In 91 General Fund Revenues 92 General Fund Tax Revenue by Source 93 General Fund Expenditures and Transfers by Function 94 Revenue Capacity Taxable Assessed Value and Estimated Actual Value of Taxable Property 95 Property Tax Rates – Direct and Overlapping Governments 96 Principal Property Taxpayers 97 Property Tax Levies and Collections 98 Debt Capacity Ratios of Outstanding Debt by Type 99 Ratios of Consolidated Public Improvement (CPI) General Obligation (GO) Debt to Estimated Actual Value of Property and CPI GO Debt per Capita 100 Ratios of Metropolitan District (MD) General Obligation (GO) Debt to Estimated Actual Value of Property and MD GO Debt per Capita 101 Legal Debt Margin Information 102 Demographic and Economic Information Demographic and Economic Statistics 103 Principal Employers 104 Operating Information Full-time Equivalent County Government Employees by Function 105 Operating Indicators by Function 107 Capital Asset Statistics by Function 109

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KEVIN KAMENETZ KEITH DORSEY, Director County Executive Office of Budget and Finance

December 21, 2010 Honorable County Executive and Members of The Baltimore County Council The Comprehensive Annual Financial Report (CAFR) of Baltimore County, Maryland (the “County”) for the fiscal year ended June 30, 2010 is submitted herewith in accordance with the requirements of Section 516 of the Baltimore County Charter. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the County. We believe the data as presented is accurate in all material aspects, that it is presented in a manner designed to fairly set forth the financial position and results of operations of the County as measured by the financial activity of its various funds, and that all disclosures are included that are necessary to enable the reader to gain the maximum understanding of the County’s financial affairs. Management of the County is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the County are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles as applicable to governmental entities in the United States (GAAP). The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. The County’s financial statements have been audited by Clifton Gunderson LLP, Independent Certified Public Accountants. The goal of the independent audit is to provide reasonable assurance that the County’s financial statements for the fiscal year ended June 30, 2010 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit that the County’s financial statements as of and for the fiscal year ended June 30, 2010, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section.

The County is required to undergo a federally mandated annual audit called “The Single Audit” which is designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the County’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the County’s separately issued Single Audit report.

Historic Courthouse | 400 Washington Avenue | Towson, Maryland 21204 www.baltimorecountymd.gov

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GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The County’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE COUNTY The Reporting Entity And Its Services The County is a corporate polity which performs all local governmental functions within its jurisdiction, as there are no incorporated towns, villages, municipalities or other political subdivisions with separate taxing authority. Under home rule charter since 1957, the County is governed by an elected County Executive and a seven-member County Council with each serving separate executive and legislative functions, respectively. The Community College of Baltimore County, the Board of Education of Baltimore County, and the Board of Library Trustees for Baltimore County are reported as discretely presented component units because they are deemed to be fiscally dependent on the County. The component units are reported separately within the County’s financial statements to emphasize that they are legally separate from the County. The County and its component units provide the full range of municipal services contemplated by statute or charter. This includes education, police and fire protection, sanitation, health and social services, public improvements, planning and zoning, recreational and cultural activities, and general administrative services. Adopted Budget The annual budget serves as the foundation for the County’s financial planning and control. Pursuant to County Charter, the County Executive presents the capital and operating budgets to the County Council during April of each year. The County Council may decrease or delete any items in the budget except those required by the public laws of the State of Maryland and except any provision for debt service on outstanding obligations or for estimated cash deficits. In its deliberations, the Council considers the recommendations of the Spending Affordability Committee (SAC) consisting of 3 members of the County Council and 2 other members from an area of specialty, such as finance, organized labor, etc. On or before February 15 in each year, the Committee submits to the County Council and County Executive a report with recommendations on fiscal goals or growth in the County budget to a level that does not exceed the rate of growth of the County’s economy. The budget must be adopted by the affirmative vote of not less than four members of the County Council on or before June 1 each year. The adopted budget becomes effective July 1 and provides the spending authority at the program level for the County’s operations. As demonstrated by the statements and schedules included in the financial section of this report, the County continues to meet its responsibility for sound financial management. A budget-to-actual comparison is provided for the General Fund on page 19 as part of the basic financial statements for the governmental funds. Additional information regarding the County’s budget can be found in Note 1 of the notes to the basic financial statements and in schedules provided in the other supplementary information section.

As part of the annual operating budget process, the County develops a six-year Capital Improvement Program (CIP) consisting of the upcoming fiscal year’s appropriations (the “Budget Year”) and the succeeding five-year program. The CIP is divided into two areas: the Metropolitan District, for all water and sewer projects, and the Consolidated Public Improvements for all other capital projects. A major source of funding for the CIP is borrowed funds. CIP bond appropriations appearing in the Budget Year represent an authorization to borrow money. The cost to service this debt impacts the General Fund and the Metropolitan District Fund and increases with the amount of outstanding debt.

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INFORMATION USEFUL IN ASSESSING THE GOVERNMENT’S ECONOMIC CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the County operates. Economic Condition The County is situated in the geographic center of Maryland, surrounding the City of Baltimore almost entirely. The County is the largest jurisdiction in a metropolitan area with a population in excess of 2.6 million. The City of Baltimore and the County are entirely separate political units. The County has the third largest land area of any political subdivision in the State of Maryland. Within its 612 square miles (plus an additional 28 square miles of water with over 175 miles of shoreline) are situated at least 29 identifiable, unincorporated communities which, as of 2000, ranged in population from approximately 4,300 to 63,000. The County’s overall population grew 14% from 692,134 in 1990 to 789,618 in 2009. Today, the County has the third highest population in the State of Maryland, and the second highest number of jobs. Healthcare and education, the sectors that consistently report job stability and growth despite economic downturns, are well represented in the County by five regional medical centers and five major colleges and universities. BD Diagnostic Systems shares a zip code with one of the largest concentrations of computer game developers on the East Coast. Headquarters for the Social Security Administration and Centers for Medicare and Medicaid Services and a corps of IT contractors form the Woodlawn Federal Center, the epicenter of national health care reform implementation. Major operations of T. Rowe Price, Toyota Financial Services, Euler Hermes, Zurich America, Baltimore Life, and Bank of America form a powerful finance-insurance community. Manufacturing holds its place with General Motors, McCormick, Stanley Black & Decker, AAI, Severstal Sparrows Point, and Procter & Gamble.

New Business and Real Estate Activity

From January 2010 through June 2010, the County worked directly with more than 100 business

prospects resulting in the relocation of new companies and expansion of existing businesses. The following highlights some of the most recent activity:

Saft America Inc., the U.S. leader in lithium ion batteries research and development has leased

an additional 20,000 square feet to deliver high power lithium batteries to Boeing for on-board satellite use. The company added 40 new jobs to the County, bringing their total employee count to 175. They are expecting additional contracts for this alternative and renewable energy product.

Zynga, a San Francisco based online-gaming company is opening their East Coast Headquarters

in a 3,200 square foot office in Timonium. Zynga expects to hire 15 to 25 employees in the next year. State Auto Insurance, an Ohio based auto insurance firm has opened their Eastern Regional

District Office in Hunt Valley. State Auto will have 72 positions in their 17,112 square foot facility on North Park Drive.

Mastix Medica, a pharmaceutical delivery products manufacturer has been purchased and

expanded on 10711 Gilroy Road in Hunt Valley. Mastix expects to employ 45 in the next year as their business orders increase in the 28,000 square foot manufacturing facility.

Firaxis Games, a digital media gaming company has moved into their new Corporate

Headquarters in Loveton Circle complex in Sparks. The redeveloped 31,000 square foot game development center won architectural awards. Firaxis employs 70 in the new facility.

Carroll Fuels Service, an independent full service fuels dealer, has purchased a new 40,000

square foot Corporate Headquarters in Hunt Valley. Carroll employs 75 and will continue their expansion.

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Gill-Simpson, an electrical construction services firm is building their new Corporate

Headquarters on Red Run Boulevard in Owings Mills. The new 40,000 square foot Class A office building is the first of three multi-story offices to be developed on the new site. Gill Simpson will employ 80 within the next two years.

Mini of Baltimore County, recently opened the world’s second largest Mini dealership on

Reisterstown Road. The auto sales and service dealership employs 40 in the new facility. Zurich American Insurance Company is moving its Baltimore area operations to the County,

bringing approximately 325 employees to Red Brook Corporate Center in Owings Mills. Lockheed Martin Information Systems & Global Technology opened their sixth facility in

Woodlawn, adding 160 new jobs. The expansion brings their total County employment to 1,500. GM Powertrain is expanding its current manufacturing operations in White Marsh to include

capacity for developing and manufacturing global rear-drive electric motors. GM plans to invest over $200 million in the project and will hire an additional 189 employees. In addition to the U.S. Department of Energy, funding from the County and the State of Maryland assisted in this expansion.

Middle River Aircraft Systems, a part of GE aviation is adding 200 new jobs at it’s facility in

eastern Baltimore County. The new jobs will support the development and manufacturing of the engine thrust reverser for the Boeing 747-8 commercial aircraft.

BP Lubricants is adding additional tank capacity to reduce energy costs and production time.

They will be investing $3.5 million in the project and doubling their current employment. Social Solutions Inc., a developer of software to track the effectiveness of nonprofit programs,

moved to the County. The technology firm will occupy 17,000 square feet of office space at Baltimore Crossroads @95. The company plans to double its 85-person work force over the next 18 months.

Atradius Trade Credit Insurance, Inc., one of the world's largest credit insurers, is moving its U.S.

headquarters from White Marsh to Schilling Green in Hunt Valley. KCI Technologies, an engineering, transportation, telecommunication, and environmental

services firm, has moved its corporate headquarters to a new green building in the Highlands Office Park in Sparks.

Six new companies have opened or moved to bwtech@UMBC, the University of Maryland

Baltimore County's business incubator and accelerator: StormCenter Communications specializes in weather and climate communications technologies that enable weather and climate visualization and collaboration for NOAA's National Weather Service, FEMA and other civilian purposes. Pearl Life Science Partners is developing a platform that uses a modified viral particle vaccine technology to increase the efficacy of vaccines. Quantum Medical Metrics is developing an advanced dual energy x-ray imaging system that can measure bone strength using three-dimensional engineering analysis. Amidus, a consultancy offering marketing and technology services, is focusing on creating personalized experiences at conferences and business events. Science Systems and Applications' Calibration and Validation Office evaluates ocean data from satellites and field operations under contract for NASA and other government agencies. Premier Management Corporation is working in collaboration with UMBC to develop cyber security technologies that detect vulnerabilities and prevent Internet attacks against federal government computer systems.

The Maryland Clean Energy Center Technology Incubator Network opened its first site at

bwtech@UMBC. The program provides affordable space and assistance with business plans, marketing, and management of intellectual property for start-up companies that are focused on a clean or renewable energy product, service or technology.

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Corporate Office Properties Trust (COPT), a publicly traded real estate investment trust (REIT)

acquired the commercial/office portfolio of Nottingham Properties. Nottingham Ridge, an 89-acre site with excellent visibility from I-95, is COPT’s premier County site. COPT plans to develop the site as a Planned Unit Development (PUD) consisting of 1,250 residential units in multi-family/mixed use buildings, 1,290,000 square feet of general office space, 311,000 square feet of retail, 500 hotel rooms in multiple buildings, 82,500 square feet of restaurant space and 10,000 square feet of conference space. The PUD concept plan has been approved by the Planning Board and the project is currently in the County’s development review process. The project is planned in three phases and the market will determine the construction timeline.

Federal Express has moved to a new $20 million, 125,000 square foot facility in Halethorpe to

support its Fed Ex Ground and Fed Ex Home Delivery business units. The facility has a total of 85 employees, 48 of which represent new jobs.

Arginetix, a Lutherville biopharmaceutical company, has secured $10 million in venture capital.

The financing will advance development of therapeutic arginase inhibitors for cardiovascular, respiratory and other human diseases.

Commercial Revitalization

From January 2010 to July 2010, the Commercial Revitalization Program assisted 20

development projects. The County provided $705,000 in financing and four Commercial Revitalization Property Tax Credits, which leveraged over $103,000,000 in investment in the districts. These projects affected over 529,000 square feet of space and impacted approximately 450 jobs.

Several major projects in the Towson Revitalization District have advanced, including the opening

of the 110,000 square foot luxury wing of the General Growth Properties owned Towson Town Center; leasing of two major residential projects: The Quarter with 430 rental units and Towson Promenade with 379 rental units; beginning of construction on the Palisades, another residential project with 355 rental units; and final development plan approval of Towson Circle III, an entertainment destination mixed use project consisting of a 2,250 seat theater complex, 120,000 square feet of retail, restaurant, and office space, and a 700 space public parking garage. In May, the long vacant Investment Building was purchased by Caves Valley Partners, and the building will be completely renovated, repositioned, and renamed as Towson City Center. The $27 million project will result in 150,000 square feet of leasable commercial space and expeted tenants include MileOne and Caves Valley Partners occupying about 30% of the space, a high-end steak house restaurant, a fast casual restaurant, and ancillary retail. Major building construction should be completed by winter 2011.

Capital Improvements

The availability of convenient access and public infrastructure is critical to business location decisions. The County and State have moved forward aggressively to construct several road projects to enable key development opportunities. One such project, Baltimore Crossroads @95 (“Crossroads”), is one of the largest development ready land opportunities between Philadelphia and Richmond along I-95. Crossroads, which consultants project holds the potential for 10,000 new jobs, has seen significant speculative and tenanted construction of office, flex and industrial buildings. Of the 1.6 million square feet proposed for the business park, 1.1 million square feet has been constructed, housing 1,250 employees and 30 businesses. Recent openings include: Mid-Atlantic Port Services, Social Solutions and CDS Logistics.

The Maryland Transportation Authority (MDTA) is constructing two additional lanes on the most congested 10-mile portion of I-95 north of Baltimore City to White Marsh in the County. These two lanes will be express toll lanes and will facilitate both regional commuting and interstate commercial and personal travel.

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In response to an earlier feasibility study jointly funded by the County and the State of Maryland, the State Highway Administration initiated a formal project planning study for the I-795/Dolfield Boulevard area, including a potential interchange at the Pleasant Hill Road/Dolfield Boulevard overpass, to provide improved access to the major employment corridor along Red Run Boulevard on the west side of I-795. The preferred route will be chosen by the SHA Administrator in the near future.

In May 2010 the new $8 million Dolfield Boulevard bridge over Red Run was opened to traffic. This bridge provides a key east-west connection between the Red Run Boulevard employment corridor and the residential growth area in Owings Mills New Town, an important piece of transportation infrastructure supporting the Owings Mills growth area.

Construction has begun on the next phase of Owings Mill Boulevard, which will provide improved access from the Owings Mills Growth Area to Liberty Road and areas to the west.

The County rebuilt and assumed control and maintenance of Grays Road in Dundalk, Maryland from Mittal Steel. The 1.7-mile road has 14 businesses with 210 employees that generate 4,000 weekly truck and vehicle trips. The transfer to County control and the subsequent reconstruction to County standards improve access, supporting and stimulating activity in the area. In 1996, as part of the implementation of the Eastern Baltimore County Revitalization Strategy, the County extended Kelso Drive in Rosedale, Maryland, enabling the development of the Marshfield Business Park. The Park now has 1.3 million square feet of space generating 500 jobs, with tenants such as U.S. Can, Restoration Hardware, and DAP. The County is planning the construction of another extension of Kelso Drive, opening up more than 100 acres of new land for business development. Brenbrook Drive in Randallstown was extended to alleviate traffic along Old Court Road and Liberty Road. The extension, which will provide increased traffic alongside the Brenbrook Shopping Center and Liberty Plaza, was completed in the spring 2009.

Base Realignment and Closure (BRAC)

Base Realignment and Closure (BRAC) is the congressionally authorized process the U.S.

Department of Defense uses to reorganize its base structure to better support today’s military. As a result of the 2005 BRAC round, Fort Meade, located southwest of the County and Aberdeen Proving Ground, 20 minutes to the northeast are scheduled to receive thousands of federal research and development, information technology, homeland security and communications jobs. The potential exists for an estimated two additional private contractor jobs for every transferred job. Estimates place the number of new BRAC-related jobs for the Baltimore metropolitan area at 35,000 by 2011. The Maryland Department of Planning estimates that the County will see 3,900 new direct, indirect and induced jobs from BRAC, and more than 3,600 new households by 2015. As the relocation deadline approaches, an increased number of moves by federal commands and military contractors are expected over the next 2-3 years.

Initiatives since January 2010 which promote the quality of life in the County to those considering

transferring to Maryland include a formal presentation to Booz Allen Hamilton, updating the Fort Meade Alliance and Chesapeake Science & Security Corridor relocation guides, and participation in the March DISSA Relocation Fair in northern Virginia and the Fort Monmouth Relocation Fair in May. As of April, the Greater Baltimore Board of Realtors informally reported that members had reported stepped up activity from families who are relocating from New Jersey.

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Industrial Redevelopment

Sparrows Point/Dundalk The Sparrows Point peninsula includes an estimated 2,200 acres of land with deepwater, heavy

rail and interstate access. In May 2008 OAO Severstal (“Severstal”) became the largest property owner, when it purchased the former Arcelor-Mittal steel facility for $810 million.

Severstal, one of Russia’s largest steel producers became the mill’s fourth owner in four years.

This transaction is a result of the U.S. Justice Department’s order to Arcelor Mittal to sell its Sparrows Point mill to preserve competition in the tin-plated steel market. Severstal continues to employ 2,300 at the East Coast’s largest fully integrated steel mill, despite global competition. As a result of declining product demand, in June 2010 the company announced a 30-day layoff of 600 workers at its Sparrows Point plant as certain operations are idled. The Sparrows Point plant has benefited from more that $700 million in capital investments and $500 million in environmental upgrades over the past decade. Essex/ Middle River

The U.S. General Services Administration (“GSA”) auctioned the 1.9 million square foot Federal

Depot facility (the “Facility”) in Middle River in 2006 for $37.5 million, setting an on-line auction record for a GSA property sale. This higher-than-expected sale price was evidence of the success of the County's waterfront revitalization efforts over the past ten years. The Facility is strategically located near the waterfront and just three minutes from I-95 along the newly opened extension of MD43, and across the street from Martin State Airport, a general aviation facility that handles a significant level of corporate air travel. The County is working with the new owners of the property, a New York-based development team, to encourage a quality redevelopment that will incorporate a mix of business, residential and commercial uses. The County and State are partnering on a study to determine the feasibility of relocating a nearby MARC commuter rail station to the Facility to facilitate redevelopment as a major transit-oriented development, with direct access to Baltimore, Washington and Aberdeen Proving Ground.

Technology Locations

bwtech@UMBC

The County and the University of Maryland Baltimore County (UMBC) jointly developed a 71-acre research and technology park adjacent to the University campus. The State and County completed the park's $2.3 million infrastructure in 1999. The facility offers companies a setting for research and development in such fields as photonics, biotechnology, and computer software development.

The five building complex is complete. RWD Applied Technology Solutions, a division of RWD Technologies specializing in internet technologies for start-up companies, occupies the first building in bwtech@UMBC. The second building is fully leased with tenants including the NASA Goddard Earth Sciences and Technology Center, software maker BD Metrics Inc., healthcare communications and technology firm Physicians Practice, Inc., engineering/design firm Edwards & Kelcey, and UMBC’s Alex. Brown Center for entrepreneurship. The U.S. Geological Survey occupies the third building, which contains over 300,000 square feet of office and wet lab space. Corporate Office Properties Trust has completed a 110,400 square foot multi-tenant office building and has attracted RMF Engineering into the County to be lead tenant. Observation Baltimore and Maryland Business Roundtable for Education have also leased space. Erickson Retirement Communities, LLC. occupies the final building at 100,000 square feet.

The UMBC Incubator and Accelorator, less than one mile from bwtech@UMBC, is a successful technology incubator. Opened in late 1998, some twenty bioscience, information technology and related research companies are now located in the former Lockheed Martin laboratory complex.

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Together, these two projects create a critical mass of technology research and development in the southwest area of the County. Marketing efforts draw on UMBC's international reputation as a research institution and location of the facilities near I-95, BWI and the Baltimore-Washington technology corridor.

Enterprise Zones

An enterprise zone is a tool the State of Maryland offers to local jurisdictions for promoting

economic development in certain qualifying areas. The County has two Enterprise Zones, the North Point Zone, located along the industrial North Point corridor in southeast Baltimore County, and the Southwest Zone, located in the Washington Boulevard/Hollins Ferry Road industrial corridor. Together, these two areas contain over 5,000 acres of industrially zoned land, and over 350 businesses. Since the approval of the first zone in December 1995, 120 businesses in the two enterprise zones have committed to investing over $249 million in real property improvements and $219 million in machinery and equipment. In addition, 2,700 new jobs have been created. The Halethorpe-Arbutus area in the Southwest Enterprise Zone has seen particularly dramatic growth, with almost 600 new jobs in a four year period.

The program offers two primary benefits to businesses in the designated zone that make new

investments or hire new employees: 1. Property Tax Credits. The local jurisdiction provides an annual property tax credit that is

phased out over a ten-year period. For the first five years, the credit is equal to 80% of the increase in property tax resulting from the new investment in real property. In each subsequent year, the credit decreases 10% until it is phased-out entirely in the tenth year.

2. Income Tax Credits. For each new, full-time job created in an enterprise zone, the State

grants a $1,000, one-time tax credit to the employer. If a worker who is certified as economically disadvantaged fills the new job, the credit can total $6,000 over three years.

The local property tax credit is applied only to the increased tax liability resulting from the new investment. Therefore, the County experiences no loss in property tax revenue as a result of the program; it simply foregoes a portion of the increase in property tax revenue that results from the new investment. Additionally, the State of Maryland reimburses the County for 50% of the property tax credits to businesses.

Tourism

Visitor spending in the County accounted for more than $1.98 billion, generated more than $15

million in direct taxes, and accounted for nearly 20,000 jobs in 2008 according to research by Global Insight. July 1, 2008 the Baltimore County Conference and Visitors Bureau transitioned from an independent non-profit organization to a program within the Department of Economic Development. The primary goals of the initiative are to add to the County’s revenue through additional hotel and amusement and admissions taxes; grow the sector's economic impact by strengthening businesses in the industry; and enhance the quality of life for County residents.

Economic Development Financing Assistance

In FY2010, the County provided financial assistance to 38 companies for various projects with

significant economic benefit for the County. In each of these projects, the County has leveraged its investment with additional financial assistance provided by public or private resources. Together, these 38 projects are expected to result in over $37 million in new investment, creating more than 549 new jobs and retaining 232 existing jobs.

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Relevant Financial Policies The County’s debt and financial management policies as set forth by the County Executive were

recognized by all major rating agencies with the continuation of the County’s triple-A credit rating. The policies included target ratios to be met and ceiling or floor ratios. The County will take appropriate corrective action to ensure that ratios do not go above or drop below their respective desired ceiling or floor.

The County’s long-term policy was to produce unreserved General Fund fund balance equal to

5% of General Fund revenues each year. The volatility in the national economy and potential changes in intergovernmental aid required the County to take the fiscally prudent step of raising it’s target level for unreserved General Fund balances during this period to 7% of General Fund revenues. Most of the 7%, an amount equal to 5% of the revenue budget will be placed in the County’s Revenue Stabilization Account to protect the County from unforeseen emergencies and future economic downturns which result in major revenue shortfalls. Funds in the account may not be utilized for any other purpose without the specific recommendation of the County Executive and a majority plus one approval of the County Council.

Any unreserved fund balance in excess of the 7% of revenues target level will be retained to

provide only short-term tax stabilization. Any excess well above the target level will be eliminated through tax rate reductions or dedicated to one time items such as pay-as-you-go contributions in order to reduce the level of programmed borrowing for capital expenditures.

Major Initiatives

The following are some selected highlights and budget priorities for FY10 that are expected to

affect future financial position: Education – The FY10 budget continued to make education the County’s top priority. The budget

included a $703.8 million General Fund appropriation for our public schools system, which exceeded maintenance of effort by $30.5 million.

Funding was provided for an additional 46 teachers for the 2009-2010 public school year in response

to a projected enrollment increase of 512 students. The budget contained the necessary additional funding to hold In-County tuition at its current rate of

$90 per credit hour for the County’s three community college campuses. Public Safety – Respective transfers of eight police officers into the Community Resources Bureau

and the transfers of six officers into the Violent Crimes Unit were made to address workload demands with first time juvenile offenders and to address the monitoring of repeat offenders and to assist on fugitive tracking and apprehension.

The Baltimore County Volunteer Fireman’s Association is looking for ways to provide economics of

scale by encouraging the County’s 33 volunteer fire companies to use County fuel depots under the County bid arrangement. A pilot program of six companies in FY09 has grown to at least 21 companies in FY10 that have benefited from the County’s fuel subsidy.

Other – More than $350,000 was included in the budget to promote the County’s change from dual

stream recycling to single stream recycling. The Health Department completed a reorganization in FY10 by reducing its eight bureaus to six which

will provide more efficient service to County residents. Ten additional positions, at a cost of $365,000 were budgeted for a new Westside Customer Service

office for the Office of Workforce Development.

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AWARDS AND ACKNOWLEDGEMENTS The GFOA has awarded a Certificate of Achievement for Excellence in Financial Reporting to the

County for its CAFR for the fiscal year ended June 30, 2009. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This CAFR must satisfy both GAAP and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year. The County has received a

Certificate of Achievement for the last 31 consecutive years (fiscal years ended June 30, 1979 – 2009). We believe that our current report continues to conform to the Certificate of Achievement Program’s requirements and we are submitting it to GFOA to determine its eligibility for another certificate.

The preparation of this report on a timely basis could not be accomplished without the efficient

and dedicated services of the entire staff of the Financial Operations Division. I would like to express my appreciation to them for their dedication to ensuring the financial integrity of the County and in the preparation of this report.

Credit also must be given to the County Executive and the County Council for their support in maintaining the highest standards of professionalism in the management of the County’s finances.

Respectfully submitted,

Keith Dorsey, Director Office of Budget and Finance

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XIII

LIST OF PRINCIPAL OFFICIALS June 30, 2010

Elective County Executive James T. Smith, Jr. County Council S.G. Samuel Moxley

Kevin Kamenetz T. Bryan McIntire Kenneth N. Oliver Vincent J. Gardina Joseph Bartenfelder John Olszewski, Sr.

Administrative

Administrative Officer Fred Homan Director of Budget and Finance Keith Dorsey County Attorney John E. Beverungen Director of Public Works Edward C. Adams, Jr. Chief of Police James W. Johnson Fire Chief John J. Hohman Director of Aging Joanne Williams Director of Economic Development David S. Iannucci Director of Employment & Training Barry F. Williams Director of Environmental Protection and Resource Management Jonas W. Jacobson Director of Information Technology Robert R. Stradling Director of Permits & Development Management Timothy M. Kotroco Director of Human Resources Theresa Stokes Hill Director of Planning Arnold F. Keller, III Director of Recreation and Parks Robert J. Barrett Superintendent of Schools Joe A. Hairston Health Officer Gregory Branch, MD Director of Libraries James H. Fish Director of Social Services Timothy W. Griffith, MSW President of Community College Sandra L. Kurtinitis, Ph.D Director of Community Conservation Mary L. Harvey

Director of Corrections James P. O’Neill

XIV

FINANCIAL

SECTION

A1

h

Independent Auditor’s Report The Honorable County Executive and Members of the County Council Baltimore County, Maryland

We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Baltimore County, Maryland (the County) as of and for the year ended June 30, 2010 and the budgetary comparison for the general fund for the year ended June 30, 2010, which collectively comprise the County’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the County’s management. Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Baltimore County, Maryland as of June 30, 2010, and the respective changes in financial position and cash flows, where applicable, thereof, and the respective budgetary comparison for the general fund, for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2010 on our consideration of the County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

1

The Management’s Discussion and Analysis and the Schedules of Funding Progress, as listed in the table of contents, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The accompanying supplementary information, such as the introductory section; the combining and individual fund statements and schedules – supplementary information; and statistical section listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund statements and schedules – supplementary information have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. The introductory section and statistical section listed in the table of contents have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.

a1 Baltimore, Maryland December 21, 2010

2

BALTIMORE COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS

Baltimore County, Maryland management is providing this narrative overview and analysis of the financial activities of the primary government (the County) as of and for the fiscal year ended June 30, 2010. Readers are to consider the data presented here in conjunction with the information presented in the transmittal letter at the front of this report and with all the County’s financial statements and accompanying notes to those financial statements, which follow this section.

Financial Highlights Government-wide:

• The County’s assets and liabilities are $3.904 billion and $2.153 billion respectively resulting in net assets of $1.751 billion.

• The County’s total net assets decreased by $281.31 million as a result of current year operations. Fund Level:

• The County’s governmental funds have combined fund balances of $46.896 million. • The General Fund’s fund balance is $232.489 million of which $109.231 million is unreserved

undesignated fund balance. Long-term Debt:

• The County’s total bond, note and certificate of participation debt increased by $185.814 million during the current year. The key factors in this increase were the issuance of $281.57 million in general obligation bonds and a $.532 million draw on the Maryland Water Quality Revolving Loan Fund offset by debt service payments of $96.288 million.

Overview of the Financial Statements

This discussion and analysis is an introduction to the County’s basic financial statements, which comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other supplementary information in addition to the basic financial statements. Government-wide Statements (Reporting the County as a Whole) The Statement of Net Assets and the Statement of Activities are two financial statements that report information about the County’s activities that should serve as a useful indicator of whether the County, as a whole, is better or worse off as a result of this year’s activities. These statements include all non-fiduciary assets and liabilities using the accrual basis of accounting. The current year’s revenues and expenses are taken into account regardless of when cash is received or paid. The Statement of Net Assets on page 14 presents all of the County’s assets and liabilities, with the difference between the two reported as “net assets”. Over time, increases and decreases in net assets measure whether the County’s financial position is improving or deteriorating.

The Statement of Activities on page 15 presents information showing how the County’s net assets changed during fiscal year 2010. All changes in net assets are reported as soon as the underlying events giving rise to the change occur, regardless of the timing of related cash flows. Therefore, revenues and expenses are reported in these statements for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).

3

The focus of the statements is clearly on the primary government and the presentation allows the user to address the relative relationship with the component units. Both statements report three activities, which include the governmental activities and business-type activities of the primary government and separate reporting for the County’s component units.

• Governmental Activities – Most of the County’s basic services are reported under this category.

Taxes and intergovernmental revenues generally fund these services. The general government, public safety, public works, health and human services, culture and leisure services, economic and community development, and education functions fall within the governmental activities.

• Business-type Activities – The County charges fees to customers to help it cover all or most of the cost of certain services it provides. The Metropolitan District water and sewer services are the only business-type activity reported.

• Discretely Presented Component Units – Component units are legally separate organizations for which the primary government is financially accountable or for which the nature and significance of their relationship with the primary government is such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. The County reports three component units that are described in the notes to the basic financial statements.

This report includes two summary reconciliations (pages 16 and 18) between the governmental fund financial statements (modified accrual accounting) and the governmental activities (full accrual accounting) reflected on the government-wide financial statements. Note 2 of the notes to the basic financial statements also provides more detail as to the transactions that impact the conversion from the modified accrual basis of accounting to the full accrual basis of accounting. Fund Financial Statements (Reporting the County’s Major Funds) Traditional users of governmental financial statements will find the fund financial statements presentation more familiar. The focus is on major funds. A fund is a fiscal and accounting entity with a self-balancing set of accounts that the County uses to keep track of specific sources of funding and spending for a particular purpose. The County’s funds are divided into three categories – governmental, proprietary, and fiduciary – and use different accounting approaches.

• Governmental funds – Most of the County’s basic services are reported in the governmental

funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for future spending. The governmental fund financial statements provide a detailed short-term view of the County’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the County’s programs. These funds are reported using modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The County reports the General Fund, Gifts and Grants Fund, and the Consolidated Public Improvement Construction Fund as major funds.

• Proprietary funds – When the County charges customers for the services it provides, whether to outside customers or to other agencies within the County, these services are generally reported in proprietary funds. Proprietary funds (enterprise and internal service) utilize accrual accounting; the same method used by private sector businesses. Enterprise funds report activities that provide supplies and services to the general public. The County reports the Metropolitan District Fund as a major fund. Internal service funds report activities that provide supplies and services to the County’s other programs and activities. Internal service funds are reported as governmental activities on the government-wide statements.

• Fiduciary funds – The County is the trustee for its employee pension plans and the post employment healthcare benefits plan. These funds are reported using accrual accounting. The government-wide statements exclude fiduciary fund activities and balances because these assets are restricted in purpose and do not represent discretionary assets of the County to finance its operations.

4

Notes to Basic Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found starting on page 27. Other Information Required supplementary information includes schedules concerning the County’s progress in funding its obligations to provide pension and post employment healthcare benefits to its employees. These schedules can be found on pages 66 and 67. Other supplementary information includes combining and individual fund financial statements and schedules for the General Fund, non-major governmental funds, internal service funds, and fiduciary funds. These statements and schedules can be found starting on page 70.

Financial Analysis of the County as a Whole

The County’s combined net assets decreased $281.31 million for FY 2010. The net assets of the governmental activities decreased $259.792 million and business-type activities decreased $21.518 million. The schedule below presents the net assets of the County’s governmental and business-type activities as of June 30, 2010. The largest component of the County’s net assets reflects its investment in capital assets (e.g., land, buildings, equipment, and infrastructure), less any related outstanding debt used to acquire the assets. The County uses these capital assets to provide services to citizens. Consequently, these assets are not liquid or available for future spending or liquidation of any liabilities. It is important to note that counties in the State of Maryland issue debt for the construction of schools, yet the school buildings are owned by each county’s Board of Education. Ownership reverts to the County if the local board determines a building is no longer needed. The County also funds projects for the Community College of Baltimore County. Therefore, while the County’s financial statements include this outstanding debt, they do not include the capital assets funded by the debt. The governmental activities negative unrestricted net assets of $309.38 million reflect the result of recording the liabilities without the corresponding assets. The County has a similar situation where it issues debt to finance capital contributions for Baltimore City owned assets. This is what causes the negative unrestricted net assets of $159.788 million in the business-type activities. These situations are described in more detail in Note 8.

Assets: 2010 2009 2010 2009 2010 2009

457,308$ 636,121$ 193,197$ 193,445$ 650,505$ 829,566$ 2,219,105 2,151,382 1,034,558 984,145 3,253,663 3,135,527 2,676,413 2,787,503 1,227,755 1,177,590 3,904,168 3,965,093

470,960 446,529 178,623 176,254 649,583 622,783 863,670 739,399 640,233 570,919 1,503,903 1,310,318

1,334,630 1,185,928 818,856 747,173 2,153,486 1,933,101

1,593,450 1,595,901 568,687 568,225 2,162,137 2,164,126 57,713 73,357 - - 57,713 73,357

(309,380) (67,683) (159,788) (137,808) (469,168) (205,491) 1,341,783$ 1,601,575$ 408,899$ 430,417$ 1,750,682$ 2,031,992$

Long-term liabilitiesTotal liabilities

Unrestricted (deficit)Total net assets

Net assets:Invested in capital assets, net of related debtRestricted

Current and other noncurrent assetsCapital assetsTotal assets

Liabilities:Current liabilities

Net Assets as of June 30 (in thousands)

GovernmentalActivities

Business-typeActivities

Total PrimaryGovernment

5

The following condensed financial information was derived from the government-wide Statement of Activities and reflects how the County’s net assets changed during the fiscal year.

Revenues 2010 2009 2010 2009 2010 2009

158,074$ 198,815$ 206,031$ 200,741$ 364,105$ 399,556$ 144,350 179,198 829 - 145,179 179,198 31,263 54,852 12,071 25,585 43,334 80,437

813,970 767,103 - - 813,970 767,103 473,792 569,736 - - 473,792 569,736 116,592 123,863 - - 116,592 123,863

9,655 6,954 - - 9,655 6,954 1,098 5,688 177 1,094 1,275 6,782

1,748,794$ 1,906,209$ 219,108$ 227,420$ 1,967,902$ 2,133,629$

390,428 457,696 - - 390,428 457,696 339,301 336,325 - - 339,301 336,325 198,075 163,493 - - 198,075 163,493

144,614 141,023 - - 144,614 141,023

68,818 66,856 - - 68,818 66,856 Economic and

13,743 10,578 - - 13,743 10,578 831,550 774,053 - - 831,550 774,053 22,057 20,305 - - 22,057 20,305

- - 240,626 223,534 240,626 223,534 2,008,586 1,970,329 240,626 223,534 2,249,212 2,193,863

(259,792) (64,120) (21,518) 3,886 (281,310) (60,234) 1,601,575 1,665,695 430,417 426,531 2,031,992 2,092,226 1,341,783$ 1,601,575$ 408,899$ 430,417$ 1,750,682$ 2,031,992$

Public safety

contributions Investment earnings

Increase (decrease) in

Water and sewer servicesTotal expenses

Interest on long-term debt

community development

leisure services

Public works

Net assets - ending

Health and human servicesCulture and

Net assets - beginning

Education

net assets

Changes in Net Assets

Governmental Business-type Total Primary

(in thousands)

Expenses

Charges for services

Public service taxes

General revenues Capital grants

Activities

General government

Income taxes

Activities Government

Program revenues

Operating grants

Property taxes

Unrestricted grants and

Total revenues

6

The following graphs and charts depict the expenses and revenues of the governmental activities and business-type activities for the fiscal year which are derived from the government-wide Statement of Activities.

Expenses & Program Revenues-Governmental Activities

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Generalgovernment

Public safety Public works Health &human

services

Culture &leisure

services

Economic &community

development

Education Interest onlong-term debt

Expenses(thousands)

Programrevenues(thousands)

Revenues by Source-Governmental Activities

Investment earnings0.06%

Public service taxes6.67%

Unrestricted grants/contributions0.55%

Charges for services9.04%

Operating grants & contributions8.25%

Capital grants & contributions1.79%

Property taxes46.55%

Income taxes27.09%

7

Expenses and Program Revenues-Business-type Activities

200,000

210,000

220,000

230,000

240,000

250,000

Water & sewer services

Expenses(thousands)

Programrevenues(thousands)

Revenues by Source-Business-type Activities

Investment earnings0.08%

Charges for services94.03%

Capital contributions5.51%

& Operating grantscontributions

0.38%

8

Governmental Activities Governmental activities decreased the County’s net assets by $257.792 million. Key elements affecting the decrease in net assets included:

• Total tax revenue from all governmental sources continued to decline with a 3.9% decrease in FY10 compared to a 4.5% decrease in the prior year: − Property taxes provided 46.5% of total revenue with an increase of $46.867 million. A steady

growth in property taxes will continue from reassessment of real property. For most homeowners, they will be taxed on a maximum 4% annual increase according to the County’s assessment growth cap no matter how large an increase in the assessed value of their property.

− Local income taxes decreased $95.944 million or 16.8% this year. A $66 million decrease is the result of the State of Maryland subtracting monies from the County’s FY10 income tax receipts for an over distribution of payments during FY09. The remaining decrease is due to increased unemployment and diminished tax receipts resulting from the slowed real estate market.

− Public service taxes decreased 5.9%. Recordation and transfer taxes had the highest percentage decreases that were due to decreases in the quantity and value of real estate transactions during the year.

• Capital asset infrastructure donations from developers decreased 57.4% to $11.653 million. Business-type Activities Business-type activities decreased the County’s net assets by $21.518 million. The key elements of the Metropolitan District operations that affect net assets are as follows:

• The County’s net cost sharing contributions to Baltimore City for capital facilities increased $5.7 million. The County’s construction and capital maintenance activities increased $13.7 million. These two increases were due to the County’s consent decree with the U.S. Environmental Protection Agency.

• Front foot assessments that are billed over 40 years to County homeowners to recover costs for County construction of water and sewer lines showed a continuing decline of $6.131 million due to developers assuming the responsibility for construction of these lines.

Financial Analysis of the County’s Funds

The County uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Governmental Funds The governmental funds provide data on near-term inflows, outflows and balances of spendable resources. This data is useful in assessing the County’s financing requirements. The unreserved fund balance serves as a useful measure of the County’s financial resources available for appropriation at the end of the fiscal year. The County’s governmental funds reported combined ending fund balances of $46.896 million as of June 30, 2010, a decrease of $152.467 million. Unreserved fund balance of the General Fund, as stated below, is available at the County’s discretion. Reserved fund balance of $49.443 million is not available for new spending because it has already been committed. The General Fund is the County’s chief operating fund. At the end of FY10, unreserved fund balance of the General Fund was $202.988 million, while total fund balance was $232.489 million. Unreserved fund balance represents 12.5% of total fund expenditures, while total fund balance represents 14.32% of total expenditures. These ratios are typically useful as a measure of the General Fund’s liquidity. Of its unreserved fund balance, the County has designated $84.357 million to its Revenue Stabilization Reserve account and $9.4 million to finance, in part, the FY11 operating budget.

9

The General Fund fund balance decreased by $28.471 million during the current fiscal year. Factors affecting fund balance are addressed in the discussion of the General Fund budget below. The Gifts and Grants Fund fund balance of $16.94 million reflects the accumulation of earned revenue in excess of grant expenditures for the various grant activities administered by the County and is restricted for those activities. The $3.724 increase from last year is attributable to a $2.2 million increase in federal stimulus funds for police programs, $.989 million in unused county matching funds for senior citizen activities, and additional fees and donations of $.397 million from county grants. The Consolidated Public Improvement Construction Fund fund balance decreased $110.833 million. Major fluctuations in fund balance are primarily the result of the timing of cash inflows from bond sale proceeds and capital expenditure outflows. The County assesses its overall cash flow needs where bond proceeds have been more on a reimbursable basis. Also, the County returned $99 million of prior year current expense contributions to the General Fund to mitigate an income tax revenue shortfall. Proprietary Funds The County’s proprietary funds provide more detailed data of the information reported in the government-wide financial statements. The Metropolitan District Fund net assets decreased $21.109 million. The main factors concerning this decrease have already been addressed in the discussion of the County’s business-type activities. General Fund Budgetary Highlights The County had no major supplemental appropriations to its original budget during the year. The County sustained cost overruns of $15 million to its Storm Emergencies program caused by historic snowfall this past winter which was funded by a budget appropriation transfer from its Insurance Contribution program. Significant differences between the final budget and actual amounts are summarized as follows:

• Income taxes budget estimates were $101.975 million less due primarily to a reduction of $66

million in tax receipts for overpayments of FY09 distributions and to the depressed economy. • Respective revenue amounts of $15.9 million, $3.4 million, and $2.1 million for Highway User,

State Aid for Police Protection, and Detention Center boarding of prisoners were under budget. These reflect state aid cutbacks to local subdivisions resulting from the State budget deficit.

• The County transferred in $117 million of operating funds previously committed to the capital budget to address the above revenue gap.

• The $13 million variance to the Pension Plan contributions was prefunding that was not used due to the County’s ability to negotiate major changes to its retirement system with labor unions.

• The County released $25 million from its health care reserves to maintain unreserved General Fund balances at a higher targeted level during this period of revenue uncertainty.

Capital Asset and Debt Administration

Capital Assets The County’s investment in capital assets for its governmental and business-type activities totaled $3.254 billion net of accumulated depreciation. The investment in capital assets includes land, buildings, machinery, vehicles and infrastructure assets.

2010 2009 2010 2009 2010 2009Land 245,965$ 236,396$ 1,306$ 1,306$ 247,271$ 237,702$ Buildings and improvements 322,761 322,169 86,359 81,281 409,120 403,450 Vehicles and equipment 99,502 88,280 4,718 4,668 104,220 92,948 Infrastructure 1,246,515 1,227,614 712,595 686,064 1,959,110 1,913,678 Construction in progress 304,362 276,923 229,580 210,826 533,942 487,749 Total 2,219,105$ 2,151,382$ 1,034,558$ 984,145$ 3,253,663$ 3,135,527$

Total PrimaryGovernment

Capital Assets as of June 30, net of accumulated depreciation (in thousands)

GovernmentalActivities

Business-typeActivities

10

The County added $12.1 million for new or improved roads, $6.1 million for storm drains, and $24.5 million for water and sewer lines as a major part of its infrastructure assets for FY10. Selected capital asset events during the current year were as follows:

• Acquisition of additional 50.2 acres to Reisterstown Regional Park, 13 acres to Cloverland Park, and 6.1 acres for a future park site were made totaling $3.1 million.

• The County acquired the former Perring Racquet Club for $3.9 million which will be transformed into a unique sportsplex recreational facility.

• The Arbutus Library/Community/Recreation Center, which was started in fiscal year 2008, nears completion at a cost of $6.8 million.

• The County has spent $1.4 million on various revitalization projects, such as streetscape, throughout the region.

Additional capital asset information can be found in Note 7. Long-term Debt At the end of the current fiscal year, the County had total general obligation debt outstanding of $1.682 billion. This includes Consolidated Public Improvement bonds and notes of $877.465 million, Pension Funding bonds of $38.885 million and Metropolitan District bonds and notes of $765.337 million. The bonds and notes are backed by the full faith and credit of the County.

2010 2009 2010 2009 2010 2009General obligation bonds 741,450$ 620,375$ 658,837$ 585,648$ 1,400,287$ 1,206,023$ General obligation BANs 174,900 175,000 106,500 106,600 281,400 281,600 Total 916,350$ 795,375$ 765,337$ 692,248$ 1,681,687$ 1,487,623$

Outstanding General Obligation Debt as of June 30 (in thousands)

Activities Activities GovernmentGovernmental Business-type Total Primary

The County’s total general obligation debt increased in 2010 by $194.064 million (considering new

he County maintains an “AAA” rating from both Standard & Poor’s and Fitch Investor’s Service, and a

The County Charter limits the amount of general obligation debt that the County may issue for

Economic Factors and Next Years Budgets and Rates

borrowing and debt retirement). T“Aaa” rating from Moody’s Investor’s Service for general obligation bonds.

Consolidated Public Improvements to 4% of the County’s assessable property base. Metropolitan District debt may be issued up to debt limit of 3.2% of the District’s assessable property base. The County’s debt is significantly below the respective limits of $3.57 billion and $2.51 billion. Additional information on the County’s long-term debt can be found in Note 8.

• The County, as well as the State of Maryland, and the Country as a whole, continue to be in the

economic issues have translated into $23 million of additional state aid reductions to

rowth in the County is projected to be 3.8%. igated by the County’s

midst of very difficult economic times. The collapse of the real estate market, the sub-prime mortgage crisis, along with bankruptcies of major financial institutions have contributed to this situation.

• The abovethe County in August 2009.

• Estimated personal income g• Lost real property tax revenue from lower property reassessments is mit

4% Homestead Assessment Growth Cap on residential property. The tax credit for homeowners will decrease from $200.1 million in FY10 to $171.8 million in FY11.

11

hese and other economic indicators were considered when preparing the FY11 General Fund budget,

There are no new taxes levied to fund the FY11 budget. The income tax rate of 2.83% is unchanged.

Other Significant Matters

Twhich estimates revenues at $1.591 billion. General Fund appropriations for FY11 of $1.6 billion reflect a 4.4% decrease over the FY10 adjusted budget. The FY11 budget reflects successful steps taken to secure two year contracts with labor unions that reduce retirement and health care costs in exchange for a pledge to fund salary step and longevity increases, as well as no furloughs or layoffs during FY11 and FY12. The retirement and health care changes have projected savings of $26 million a year in future years. The difference between estimated revenue and appropriations of $9 million is covered by fund balance reserves. The projected unreserved fund balance at the end of FY11 is $169.6 million or 10.66% of the estimated FY11 total revenues.

The respective real property and personnel property tax rates remain at $1.10 and $2.75 per $100 of assessed value. The Homestead Assessment Growth Cap remains at 4%, excluding home sales, new construction, and non-principal residences. Additional construction and capital maintenance activities arising from the County’s consent decree with the U.S. Environmental Protection Agency required the Metropolitan District Sewer Service, Water Distribution and Water Consumption charges to be increased 10% July 1, 2010.

The County administers an Other Post Employme Benefits trust fund (OPEB Plan) to provide for

Information Requests

nt

payment of healthcare and life insurance benefits for retirees of Baltimore County Government (County), Baltimore County Board of Education (BOE), the Community College of Baltimore County (CCBC), the Board of Library Trustees for Baltimore County (BLT) and the Baltimore County Revenue Authority (BCRA). At the end of each fiscal year, each employer must report an OPEB contribution deficiency or excess contribution if their actual contributions do not equal their actuarially determined annual required contribution (ARC). At June 30, 2010, the County and it’s component units had respective net OPEB assets of $34.995 million and $19.512 million that are reported in the Governmental Activities of the Government-wide Statement of Net Assets.

This financial report is designed to provide a general verview of Baltimore County’s finances for all those

he County’s component units issue their own separately audited financial statements. These

o

with an interest in good government. The report seeks to demonstrate the County’s accountability for the monies it receives and for the services it provides. Requests for information regarding this report or additional financial information can be sent to the Baltimore County Office of Budget and Finance, 400 Washington Avenue, Room 149 Towson, Maryland 21204-4665. Tstatements may be obtained by directly contacting the component unit (see Note 1).

12

Basic Financial Statements

Government-wide financial statements combine all of Baltimore County’s governmental and business-type activities, as well as its discretely presented components. Fund financial statements show the financial position and the operating results by fund. Notes to the Basic Financial Statements are an integral part of the financial statements.

13

Governmental Business-type ComponentActivities Activities Total Units

ASSETSCash and investments (Note 3) 172,078$ 21,211$ 193,289$ 40,854$ Receivables, net (Note 5) 213,110 168,455 381,565 48,403 Due from primary government (Note 6) - - - 67,570 Inventories 6,442 570 7,012 3,536 Prepaid costs 9,058 - 9,058 1,498 Deferred charges 2,994 1,687 4,681 133 Net OPEB asset (Note 15) 34,995 - 34,995 19,512 Restricted assets:

Cash and investments (Note 3) 18,631 1,274 19,905 1,108 Capital assets (Note 7)

Non-depreciable 550,327 230,886 781,213 299,159 Depreciable (net of accumulated depreciation) 1,668,778 803,672 2,472,450 1,016,511

Total assets 2,676,413 1,227,755 3,904,168 1,498,284

LIABILITIESAccounts payable 43,460 21,418 64,878 50,776 Accrued payroll 15,499 1,273 16,772 24,231 Accrued interest payable 12,731 9,712 22,443 - Internal balances 2,623 (2,623) - - Due to component units (Note 6) 68,103 - 68,103 - Other liabilities 19,313 3,708 23,021 3,213 Unearned revenue (Note 5) 14,280 - 14,280 9,762 Liabilities payable from restricted assets - - - 1,108 Noncurrent liabilities (Note 8)

Due within one year 294,951 145,135 440,086 21,736 Due in more than one year 863,670 640,233 1,503,903 23,235

Total liabilities 1,334,630 818,856 2,153,486 134,061

NET ASSETSInvested in capital assets, net of related debt 1,593,450 568,687 2,162,137 1,296,542 Restricted for:

OPEB trust 34,995 - 34,995 19,512 Public works 4,883 - 4,883 -

Economic development 895 - 895 - Education - - - 12,803 Grant projects 16,940 - 16,940 - Expendable endowments - - - 3,496

Unrestricted (deficit) (309,380) (159,788) (469,168) 31,870 Total net assets 1,341,783$ 408,899$ 1,750,682$ 1,364,223$

The accompanying notes are an integral part of these financial statements.

Primary Government

Baltimore County, MarylandStatement of Net Assets

June 30, 2010(In Thousands)

14

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ConsolidatedGifts Public Nonmajor Totaland Improvement Governmental Governmental

General Grants Construction Funds FundsASSETS Cash and investments 71,673$ 19,863$ -$ 6,860$ 98,396$ Cash and investments - restricted 18,631 - - - 18,631 Receivables, net 151,248 34,088 12,200 11,934 209,470 Due from other funds 169,456 - - - 169,456 Inventories 5,906 - - - 5,906 Total assets 416,914$ 53,951$ 12,200$ 18,794$ 501,859$

LIABILITIES AND FUND BALANCESLiabilities Accounts payable 15,528$ 3,994$ 18,046$ -$ 37,568$ Accrued expenditures 13,924 1,387 - 39 15,350

Due to other funds - - 169,456 - 169,456 Due to component units 50,977 - 17,126 - 68,103 Other liabilities 8,209 975 10,129 - 19,313 Deferred revenue 95,787 30,655 6,797 11,934 145,173 Total liabilities 184,425 37,011 221,554 11,973 454,963

Fund balances Reserved for: Encumbrances 5,762 - - 2,107 7,869 Inventories 5,906 - - - 5,906 Imprest funds 70 - - - 70

Equipment financing 17,763 - - - 17,763 Loan guarantees and grants - 16,940 - 895 17,835

Unreserved: Designated for subsequent

year's expenditures:General Fund 9,400 - - - 9,400 Special Revenue Funds - - - 154 154

Designated for revenue stabilization 84,357 - - - 84,357 Undesignated, reported in: General Fund 109,231 - - - 109,231 Capital Projects Fund - - (209,354) - (209,354) Special Revenue Funds - - - 3,665 3,665 Total fund balances (deficit) 232,489 16,940 (209,354) 6,821 46,896 Total liabilities and fund balances 416,914$ 53,951$ 12,200$ 18,794$

Amounts reported for governmental activities in the statement of net assets are different because:Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. 2,199,838 Other long-term assets are not available to pay for current-period

expenditures and, therefore, are deferred in the funds. 130,893 Excess other post employment benefits (OPEB) contributions made in relation to the Annual Required

Contribution is recognized as a year-end asset. 34,995 Internal service funds are used by management to charge the costs of self insurance, fleet management

and reproduction to individual funds. The assets and liabilities of the internal service funds areincluded in governmental activities in the statement of net assets. 35,960

Long-term liabilities, including bonds payable, are not due and payablein the current period and therefore are not reported in the funds (Note 2). (1,106,799)

Net assets of governmental actitivies 1,341,783$


(In Thousands)

Baltimore County, MarylandBalance Sheet

Governmental FundsJune 30, 2010

16

ConsolidatedGifts Public Nonmajor Totaland Improvement Governmental Governmental

General Grants Construction Funds FundsREVENUESTaxes 1,414,149$ -$ -$ -$ 1,414,149$ Licenses and permits 3,009 - - 639 3,648 Intergovernmental 30,904 123,495 16,116 - 170,515 Repayment of loans - 542 - 1,908 2,450 Charges for services 9,497 3,964 300 343 14,104 Assessments - - 1,091 - 1,091 Fines and forfeitures 3,660 - - - 3,660 Investment income 618 218 - 249 1,085 Miscellaneous 20,299 834 2,916 - 24,049 Total revenues 1,482,136 129,053 20,423 3,139 1,634,751

EXPENDITURESCurrent: General government 70,594 2,728 - 650 73,972 Public safety 333,523 8,212 - - 341,735 Public works 140,536 173 - - 140,709 Health and human services 37,973 104,949 - - 142,922 Culture and leisure services 24,370 2,629 - - 26,999 Economic and community development 2,064 13,037 - 141 15,242 Pension plan contributions 53,156 - - - 53,156

Healthcare contributions 66,769 - - - 66,769 Loans - - - 1,163 1,163

Miscellaneous 17,450 101 - - 17,551 Capital projects - - 126,773 - 126,773 Payments to component units 770,916 - 111,543 - 882,459 Debt service: Principal retirement 46,030 - - - 46,030

Interest 24,213 - - - 24,213 Fiscal charges 1,216 - - - 1,216

Total expenditures 1,588,810 131,829 238,316 1,954 1,960,909 Excess (deficiency) of revenues over expenditures (106,674) (2,776) (217,893) 1,185 (326,158)

OTHER FINANCING SOURCES (USES)Bonds issued - - 174,970 - 174,970 Discount on bonds issued - - (2,002) - (2,002) Premium on bonds issued 725 - - - 725 Transfers in 117,953 7,831 33,123 - 158,907 Transfers out (40,475) (1,331) (99,031) (18,072) (158,909) Total other financing sources (uses) 78,203 6,500 107,060 (18,072) 173,691

Net change in fund balances (28,471) 3,724 (110,833) (16,887) (152,467) Fund balances (deficit) at beginning of the year 260,960 13,216 (98,521) 23,708 199,363 Fund balances (deficit) at end of the year 232,489$ 16,940$ (209,354)$ 6,821$ 46,896$


(In Thousands)

Baltimore County, MarylandStatement of Revenues, Expenditures, and Changes in Fund Balances

Governmental FundsFor the Year Ended June 30, 2010

17

Net change in fund balances-total governmental funds (152,467)$

Amounts reported for governmental activities in the statement of activities aredifferent because:

Governmental funds report capital outlays as expenditures. However, in the statementof activities the cost of those assets is allocated over their estimated useful lives andreported as depreciation expense. This is the amount by which capital outlaysexceeded depreciation in the current period (Note 2). 55,819

The net effect of various transactions involving capital assets(I.e., sales, trade-ins, and donations) is to increase net assets (Note 2). 11,266

Some revenues will not be collected for several months after the fiscal year ends. As such these revenues are not considered "available" revenues and are deferred in the governmental funds. Deferred revenues decreased this year. (22,885)

Expenses in the statement of activities are adjusted for the difference between OPEBexpense in relation to the Annual Required Contribution (ARC) and contributionsmade in relation to the ARC. (17,791)

The issuance of long-term debt provides current financial resources to governmentalfunds, while the repayment of the principal of long-term debt consumes the currentfinancial resources of governmental funds. Neither transaction, however, has any effect on net assets. This amount is the net effect of these differences in thetreatment of long-term debt and related items (Note 2). (111,037)

Some expenses reported in the statement of activities do not require the use of currentfinancial resources and therefore are not reported as expenditures in governmentalfunds (Note 2). 1,152

Internal service funds are used by management to charge the costs of self insurance,fleet management, and reproduction services to individual funds. The net expense ofthese internal service funds is reported with governmental activities. (23,849)

Change in net assets of governmental activities (259,792)$


(In Thousands)For the Year Ended June 30, 2010

Baltimore County, MarylandReconciliation of the Statement of Revenues,

Expenditures, and Changes in Fund Balances of Governmental Fundsto the Statement of Activities

18

Variance withActual Amounts Final Budget-

Original Final (Budgetary Basis) Positive (Negative)REVENUESTaxes 1,527,521$ 1,527,521$ 1,414,149$ (113,372)$ Licenses and permits 3,096 3,096 3,009 (87) Intergovernmental 50,415 50,415 30,904 (19,511) Charges for services 9,152 9,152 9,497 345 Fines and forfeitures 3,107 3,107 3,660 553 Reimbursement from other funds 6,107 6,107 6,938 831 Interest on investments 3,614 3,614 933 (2,681) Miscellaneous 18,784 18,784 20,337 1,553

Total revenues 1,621,796 1,621,796 1,489,427 (132,369)

EXPENDITURESCurrent:

General government 77,555 77,612 75,026 2,586 Public safety 328,754 328,754 327,432 1,322 Public works 125,215 140,215 136,389 3,826 Health and human services 38,626 38,626 37,993 633 Culture and leisure services 25,260 25,260 24,681 579 Economic and community development 2,177 2,177 2,104 73 Pension plan contributions 66,183 66,183 53,175 13,008

Healthcare contributions 107,967 92,910 67,607 25,303 Miscellaneous 18,233 18,381 17,375 1,006

Payments to component units 771,002 770,784 770,486 298 Debt service:

Principal retirement 46,030 46,030 46,030 - Interest 25,789 25,919 24,213 1,706 Fiscal charges 546 546 541 5

Total expenditures 1,633,337 1,633,397 1,583,052 50,345 Excess (deficiency) of revenues over

expenditures (budgetary basis) (11,541) (11,601) (93,625) (82,024)

OTHER FINANCING SOURCES (USES)Transfers in - - 117,609 117,609 Transfers out (40,538) (40,550) (40,550) -

Total other financing sources (uses) (40,538) (40,550) 77,059 117,609 Excess (deficiency) of revenues and other

financing sources over expenditures and otherfinancing uses (budgetary basis) (52,079)$ (52,151)$ (16,566) 35,585$

Adjustments required under generally acceptedaccounting principles:Net change during year in reserve for encumbrances 777 Unbudgeted equipment financing activity (13,369) Net change in reserve for inventories, imprest funds

and other programs (2) Prior year encumbrances liquidations 689 Net change in fund balance-GAAP (28,471)

Fund balance at beginning of the year 260,960 Fund balance at end of the year 232,489$


Budgeted Amounts

Baltimore County, MarylandBudgetary Comparison Statement - General Fund

For the Year Ended June 30, 2010(In Thousands)

19

MetropolitanDistrict Internal

Enterprise ServiceFund Funds

ASSETSCurrent assets: Cash and investments 21,211$ 73,682$ Cash and investments - restricted 1,274 - Receivables, net (Note 5) 26,965 3,640

Due from other funds - 11,456 Inventories 570 536

Prepaid costs - 9,058 Deferred charges 1,687 -

Total current assets 51,707 98,372

Noncurrent assets:Assessments receivable (Note 5) 141,490 -

Capital assets: Non-depreciable 230,886 - Depreciable (net of accumulated depreciation) 803,672 19,267 Total noncurrent assets 1,176,048 19,267 Total assets 1,227,755 117,639

LIABILITIESCurrent liabilities: Accounts payable 21,418 5,892

Accrued payroll 1,273 149 Accrued interest payable 9,712 -

Due to other funds - 11,456 Compensated absences 423 239

Claims and judgments - 36,140 General obligation debt (Note 8) 144,112 - Certificates of participation 600 -

Other liabilities 3,708 - Total current liabilities 181,246 53,876

Noncurrent liabilities:Compensated absences 1,077 -

Claims and judgments - 25,180 General obligation debt (Note 8) 636,195 - Certificates of participation 2,961 -

Total noncurrent liabilities 640,233 25,180 Total liabilities 821,479 79,056

NET ASSETSInvested in capital assets, net of related debt 568,687 19,267 Unrestricted (deficit) (162,411) 19,316 Total net assets 406,276 38,583$

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 2,623

Net assets of business-type activities 408,899$


(In Thousands)


Proprietary FundsJune 30, 2010

20


Enterprise ServiceFund Total Funds

OPERATING REVENUESLicenses and permits 438$ 438$ -$ Charges for services 198,383 198,383 210,799 Assessments 7,135 7,135 - Intergovernmental 829 829 Miscellaneous 75 75 265 Total operating revenues 206,860 206,860 211,064

OPERATING EXPENSESPersonal services 22,508 22,508 3,001 Business and travel 91 91 - Contractual services 68,382 68,382 707 Rents and utilities 4,347 4,347 558 Supplies and maintenance 59,544 59,544 10,414 Insurance claims and expenses - - 215,996 Equipment 1,835 1,835 - Fringe benefits and overhead 11,655 11,655 - Depreciation expense 20,687 20,687 4,343 Other 70 70 783 Total operating expenses 189,119 189,119 235,802 Operating income (loss) 17,741 17,741 (24,738)

NONOPERATING REVENUES (EXPENSES)Interest on investments 177 177 478 Interest expense (19,428) (19,428) - Capital contributions to other subdivisions (31,670) (31,670) - Total nonoperating revenues (expenses) (50,921) (50,921) 478 Income (loss) before transfers and capital contributions (33,180) (33,180) (24,260) Transfers in - - 346 Transfers out - - (344) Capital contributions from external parties 12,071 12,071 - Change in net assets (21,109) (21,109) (24,258) Net assets at beginning of the year 427,385 62,841 Net assets at end of the year 406,276$ 38,583$

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (409)

Change in net assets of business-type activities (21,518)$


(In Thousands)

Baltimore County, MarylandStatement of Revenues, Expenses, and Changes in Fund Net Assets

Proprietary FundsFor the Year Ended June 30, 2010

21


Enterprise ServiceFund Funds

CASH FLOWS FROM OPERATING ACTIVITIESReceipts from customers 211,917$ 210,251$ Payments to suppliers (145,984) (11,519) Payments to employees (33,459) (2,928) Payment for interfund services used - (783) Claims paid - (213,704) Other receipts - 217 Net cash provided (used) by operating activities 32,474 (18,466)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESTransfers in - 346 Transfers out - (344) Repayments from other funds - 1,941 Repayments to other funds - (1,941) Capital contributions paid to other subdivisions (31,385) - Net cash provided (used) by noncapital financing activities (31,385) 2

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESProceeds from capital debt 107,582 - Retirement of bond anticipation notes (100) - Capital contributions from external parties 5,452 - Acquisition and construction of capital assets (55,657) (5,616) Principal paid on capital debt (34,543) - Interest paid on capital debt (27,505) - Sales of capital assets - 635 Net cash provided (used) by capital and related financing activities (4,771) (4,981)

CASH FLOWS FROM INVESTING ACTIVITIESInterest on investments 177 478 Net cash provided by investing activities 177 478 Net decrease in cash and cash equivalents (3,505) (22,967) Cash and cash equivalents at beginning of the year 25,990 96,649 Cash and cash equivalents at end of the year 22,485$ 73,682$

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) 17,741$ (24,738)$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense 20,687 4,343

Amortization expense 303 - Effect of changes in operating assets and liabilities:

Receivables, net (1,884) (548) Prepaid costs - (1,610) Inventories (71) (48) Accounts and other payables (5,098) (498) Accrued expenses 796 73 Claims and judgements - 4,560

Net cash provided (used) by operating activities 32,474$ (18,466)$

NONCASH CAPITAL FINANCING ACTIVITIESCapital assets acquired through contributions from developers. 5,589$ -$


(In Thousands)

Baltimore County, MarylandStatement of Cash Flows

Proprietary FundsFor the Year Ended June 30, 2010

22

Benefits Trust Funds

ASSETSCash and cash equivalents (Note 3) 52,546$ Collateral for loaned securities (Note 3) 100,951 Receivables:

Accrued interest & dividend income 4,030 Receivable for investments sold 29,240 Receivables other 3,348

Total receivables 36,618 Investments, at fair value:

U.S. Government and Agency securities 186,235 Municipal bonds 38,421 Foreign bonds 37,653 Corporate bonds 143,492 Stocks 406,468 Bond mutual funds 207,518 Stock mutual funds 397,186 Real estate equity funds 70,505 Hedge funds 106,369 Private equity funds 96,082 Real assets 36,774 Global asset allocation 320,823

Total investments 2,047,526 Total assets 2,237,641

LIABILITIESSecurities lending payable 102,880 Investments purchased 51,170 Investment expenses payable 2,342 Refunds payable 251 Other 3,910 Total liabilities 160,553

NET ASSETSNet assets held in trust for benefits 2,077,088$


(In Thousands)

Baltimore County, MarylandStatement of Fiduciary Net Assets

Fiduciary FundsJune 30, 2010

23

Benefits Trust Funds

ADDITIONSContributions:

Employer 168,850$ Employees 57,489 Other 9,553

Total contributions 235,892

Investment earnings:Net increase in the fair value of plan assets 267,033 Interest and dividends 42,880 Investment expenses (13,062)

Net investment gain 296,851 Net income from securities lending:

Securities lending income 550 Less:Net decrease in fair value of investments (1,929) Borrower rebates 98 Agent fees (182)

Net loss from securities lending (1,463) Total net investment gain 295,388

Total additions 531,280

DEDUCTIONSBenefits 275,905 Refunds 2,235 Administrative expense 1,099

Total deductions 279,239 Change in net assets 252,041 Net assets at beginning of the year 1,825,047 Net assets at end of the year 2,077,088$


(In Thousands)

Baltimore County, MarylandStatement of Changes in Fiduciary Net Assets

Fiduciary FundsFor the Year Ended June 30, 2010

24

Board ofBoard of Community Library

Education College Trustees TotalASSETSCash and investments (Note 3) 11,983$ 24,718$ 4,153$ 40,854$ Receivables 33,804 14,464 135 48,403 Due from primary government 64,459 1,646 1,465 67,570 Inventories 1,391 1,855 290 3,536 Prepaid costs 1,491 - 7 1,498 Deferred charges - 133 - 133 Cash restricted for lease purchase 1,108 - - 1,108 Net OPEB asset (Note 15) 16,908 2,104 500 19,512 Capital assets (Note 7)

Non-depreciable 267,083 32,076 - 299,159 Depreciable (net of accumulated depreciation) 918,062 88,633 9,816 1,016,511

Total assets 1,316,289 165,629 16,366 1,498,284

LIABILITIES Accounts payable 36,490 12,985 1,301 50,776 Accrued payroll 19,921 3,452 858 24,231 Other liabilities 1,704 1,509 - 3,213 Unearned revenue 4,120 5,569 73 9,762 Liabilities payable from restricted assets 1,108 - - 1,108 Noncurrent liabilities (Note 8)

Due within one year 17,452 3,240 1,044 21,736 Due in more than one year 21,463 1,772 - 23,235

Total liabilities 102,258 28,527 3,276 134,061

NET ASSETSInvested in capital assets, net of related debt 1,166,019 120,709 9,814 1,296,542 Restricted for:Education 8,437 4,366 - 12,803 OPEB 16,908 2,104 500 19,512 Expendable endowments - 1,880 1,616 3,496 Unrestricted 22,667 8,043 1,160 31,870

Total net assets 1,214,031$ 137,102$ 13,090$ 1,364,223$


(In Thousands)


Component UnitsJune 30, 2010

25

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26

BALTIMORE COUNTY, MARYLAND NOTES TO BASIC FINANCIAL STATEMENTS

JUNE 30, 2010

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The accounting and reporting policies of the County conform in all material respects to generally accepted accounting principles as applicable to governmental entities in the United States (GAAP). The following is a summary of significant policies. Financial Reporting Entity Baltimore County, Maryland (the "County") is a corporate polity, performing all local governmental functions within its jurisdiction. Under home rule charter since 1957, the County is governed by an elected County Executive and a seven-member County Council, with each serving executive and legislative functions, respectively.

In accordance with GAAP, the accompanying financial statements include the various departments and agencies governed by the County Executive and County Council (the primary government) and the County's component units. Discretely presented component units are reported separately from the primary government to emphasize that they are legally separate from the County. The component units are included as part of the County's reporting entity because of the significance of their operational or financial relationships with the County. The component units are fiscally dependent on the County because the County approves budget requests providing a significant amount of funding for each of these units, levies taxes to provide the majority of their fiscal support, and issues debt for construction of capital facilities. Discretely Presented Component Units The discretely presented component units are all governed by individual boards. The Board of Education of Baltimore County and the Board of Trustees of the Community College of Baltimore County are appointed by the Governor of Maryland. The Board of Library Trustees is appointed by the County Executive. A brief description of the component units follows.

1. The Board of Education of Baltimore County operates all public schools (grades K through 12) within the County.

2. The Board of Library Trustees operates all public libraries within the County. 3. The Board of Trustees of the Community College of Baltimore County operates a two-year college program at

three campuses: Catonsville, Dundalk and Essex. Annual financial reports can be obtained from the respective administrative offices listed below:

Baltimore County Public Schools Community College of Baltimore County Department of Fiscal Services Office of Finance 1940G Greenspring Drive 7200 Sollers Point Road Timonium, Maryland 21093 Baltimore, Maryland 21222

Board of Library Trustees 320 York Road Towson, Maryland 21204

Related Organizations

The County Executive is also responsible for appointing the members of numerous boards, but the County's accountability for these organizations does not extend beyond making appointments. These boards include:

Adult Public Guardianship Review Board Advisory Commission on Environmental Quality Advisory Arbitration Panel Agricultural Land Preservation Advisory Board

Animal Hearing Board Board of Appeals Board of Architectural Review Board of Health Board of Liquor License Commissioners Board of Recreation and Parks Board of Social Services Child Protection Panel

Children and Youth Council Commission for Women Commission on Aging Commission on Arts and Sciences

27


JUNE 30, 2010

Commission on Disabilities Commission on Veterans’ Affairs Criminal Justice Coordinating Council Design Review Panel Drug and Alcohol Abuse Advisory Council Electrical Administrative Board

Ethics Commission Ethnic Diversity Advisory Council Human Relations Commission Landmarks Preservation Commission

Local Management Board Mental Health Advisory Council Minority and Women Business Personnel and Salary Advisory Board

Enterprise Commission Planning Board Plumbing Board Professional Services Selection Committee Revenue Authority Soil Conservation District Board Workforce Development Council

The amounts that the County appropriated to these organizations during the fiscal year ended June 30, 2010 were immaterial to the basic financial statements taken as a whole. Government-Wide and Fund Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Government-Wide Financial Statements The statement of net assets and statement of activities report information on all non-fiduciary activities of the primary government and its component units. Primary government activities are distinguished between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. Interfund activity within the governmental activities and within the business-type activities have been eliminated from these statements. The Statement of Net Assets presents the reporting entity’s non-fiduciary assets and liabilities, with the difference reported as net assets. Net assets are reported in three categories: Invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation and reduced by outstanding balances for bonds, notes, and other debt that are attributed to the acquisition, construction, or improvement of those assets.

Restricted net assets result when constraints placed on net asset use are either externally imposed by law through constitutional provisions or enabling legislation.

Unrestricted net assets consist of net assets which do not meet the definition of the two preceding categories. Unrestricted net assets often are designated, to indicate that management does not consider them to be available for general operations. Unrestricted net assets often have constraints on resources which are imposed by management, but can be removed or modified.

The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable within a specific function. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not meeting the definition of program revenues are reported as general revenue. Fund Financial Statements Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. Major

28


JUNE 30, 2010

individual governmental funds and major individual proprietary funds are reported as separate columns in the fund financial statements, with nonmajor funds being combined into a single column. The County reports the following major governmental funds: The General Fund is the County’s general operating fund. It is used to account for all financial resources except those required to be accounted for in another fund. The Gifts and Grants Fund accounts for a number of gifts and grants awarded to the County that are not accounted for in another fund. The Consolidated Public Improvement Construction Fund accounts for the acquisition or construction and related financing sources for capital facilities of the primary government and for capital contributions made to the County’s component units for their capital facilities. The County reports on the following major enterprise fund:

The Metropolitan District Fund accounts for the operation of the Metropolitan District, which provides water supply and sewerage systems to County residents within the District. The County also reports the following fund types: Internal Service Funds account for the operation of a motor pool of passenger vehicles and light duty trucks, a printing facility and a self-insurance program for workers’ compensation; general and auto liability insurance; and employee health insurance. Pension Trust Funds account for the accumulation of assets to be used for pension benefit payments to qualified employees. Other Post Employment Benefits Trust Fund accounts for the accumulation of assets to be used for healthcare and life insurance benefit payments to qualified employees. Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds and fiduciary funds financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. The governmental funds financial statements are reported using the modified accrual basis of accounting. The measurement focus of these funds is the determination of financial position and changes in financial position ("current financial resources" focus). Under the modified accrual basis of accounting, revenues are recorded when they are both measurable and available. "Measurable" means the amount of the transaction can be determined and “available” means collectable within the current period or soon thereafter to pay liabilities of the current period. The County considers sales and income taxes, interest income and various intergovernmental revenues available if they are collected within 60 days after year-end. Property tax revenue is recognized on receipts within 30 days of year-end. Revenue related to expenditure driven grants is recognized when the applicable eligibility requirements have been met and to the extent that cash is expected to be received within one year of year-end. Licenses and permits, charges for services, fines and forfeitures, and miscellaneous revenues are recorded when received in cash because they are generally not measurable until actually received. Expenditures, other than principal and interest on long-term debt and compensated absences as described below, are recorded when the liability is incurred. Principal and interest on general long-term debt are recorded in the governmental funds as liabilities when due. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary

29


JUNE 30, 2010

fund’s principal ongoing operations. The principal operating revenues of Enterprise and Internal Service Funds are charges to customers for sales and services. Operating expenses for Enterprise and Internal Service Funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. Revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Private sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to the same limitation. The County has elected not to follow subsequent private-sector guidance. The pension trust funds and the other postemployment benefit trust fund use the accrual basis of accounting. Member contributions are recognized in the period when due. Employer contributions are recognized when due and a formal contribution commitment has been made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investment purchases and sales are recorded on a trade-date basis. These transactions are not finalized until settlement date, which occurs approximately three business days after the trade date. The County reports unearned revenue in the government-wide statements and proprietary fund financial statements when cash is received prior to being earned. Deferred revenue is recognized in the governmental fund statements when revenue is unearned or unavailable.

Budgetary Data As required by Article VII of the Baltimore County Charter, the annual operating budget and the capital budget are prepared by the County Executive and submitted to the County Council for adoption. Such budgets are generally prepared on the modified accrual basis of accounting described above and reflect encumbrance accounting. Prior to adoption of the budgets, the County Council may decrease or delete any item with the exception of those required by the general laws of the State of Maryland, provisions for debt service on outstanding obligations and provisions to eliminate any estimated cash deficits. Requests for supplementary and emergency appropriations may be prepared during the year by the County Executive and adopted by the County Council. There were $.072 million in supplementary and emergency appropriations adopted for the General Fund operating budget during fiscal year 2010. Annual budgets are adopted for the General Fund and the nonmajor Liquor License Special Revenue Fund. All other governmental funds have an adopted project-length budget. The operating budget reflects appropriations for the General Fund and the Special Revenue Funds on a function/agency/program basis. Expenditures and encumbrances of such funds may not legally exceed appropriations at the program level. Inter-program transfers of no more than ten percent of appropriations may be authorized by the County Administrative Officer. Inter-program transfers in excess of ten percent of appropriations require the approval of the County Executive and the County Council. Inter-agency transfers between County offices, departments or agencies may be made during the last quarter of the fiscal year only on the recommendation of the County Executive with the approval of the County Council. All unencumbered appropriations of annual budgets lapse at the end of the fiscal year. The County presents its General Fund budgetary comparison statement as part of the basic financial statements. Unbudgeted equipment financing activity in the General Fund comparison consists of $.029 million of interest income decreased by $13.398 million is equipment purchases. The unspent equipment financing proceeds of $17.763 million are reported as a reservation of fund balance at fiscal year-end. The capital budget reflects appropriations for the Consolidated Public Improvement Construction Fund at the individual project level. Expenditures and encumbrances may not legally exceed appropriations at that level and unencumbered appropriations lapse at the completion or abandonment of individual projects. Transfers of appropriations between projects must be approved by the County Executive and the County Council. Pooled Cash, Cash Equivalents and Investment Income The County maintains a cash and investment income pool for all funds except for the fiduciary funds. Based on the availability of cash in various funds, marketable securities are purchased and income on investments is credited to the General, Metropolitan District, and Self-Insurance Program Funds.

30


JUNE 30, 2010

For purposes of the statements of cash flows, the County defines cash equivalents to include the following: all highly liquid, unrestricted investments with a maturity of three months or less when purchased; all cash and investment pools that are used essentially as demand accounts; all cash with fiscal agents; and all restricted cash and investments that have been determined to be cash equivalents. Debt Retirement General obligation long-term debt retirements are paid from the General and Metropolitan District Funds. The Metropolitan District Fund includes $121 million of receivables for future billings of assessments for water and sewer lateral pipe abutting properties within the District. These assessments, which are levied on individual properties for a period of forty years from the date of installation, represent a significant cash stream that is designated to retire the Metropolitan District long-term debt.

Investments Money market investments and participating interest-earning investment contracts are carried at amortized cost, which approximates fair value. Other investment securities are carried at fair value. Securities traded on national or international exchanges are valued at the last reported sales price at the prevailing exchange rates as of June 30, 2010. The fair value of mutual funds is based on the fair values of the underlying securities. The fair value of real estate equity funds is based on independent appraisals. Private equity funds and hedge funds are valued based on information provided by the respective fund managers. Inventories Inventories are valued at cost. They are accounted for using the purchases method in the General Fund and the proprietary funds. Under the purchases method, inventories are recorded as expenditures when purchased; however, material amounts of inventories are reported as assets. A reservation of fund balance for the amount of General Fund inventories has been made in the governmental fund statements to reflect the non-availability of those amounts for appropriation or expenditure. Capital Assets Capital assets of governmental funds are recorded in the statement of net assets at historical cost or at estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at the estimated fair market value at the date of donation. The County’s capitalization levels are $1,000 for vehicles, machinery and equipment, and $25,000 for buildings and infrastructure. The costs of normal maintenance and repairs that do not add value to the asset or materially extend the asset’s life are not capitalized. An allowance for depreciation has been provided using the straight-line method over the estimated useful life. The estimated useful lives range from two to fifteen years for vehicles, machinery and equipment, twenty to fifty years for buildings, and twenty to seventy-five years for infrastructure. Major outlays for the construction of buildings and infrastructure are capitalized as constructed. Interest is capitalized during the construction of business-type activities capital assets as it is incurred. Outstanding Claims The outstanding claims liability includes estimates for all known workers' compensation, personal injury, property damage and health claims and an estimate for claims incurred but not reported at June 30, 2010. Compensated Absences County employees are granted vacation, personal, and sick leave in varying amounts. In the event of termination, an employee is reimbursed for accumulated vacation and personal leave days up to a certain maximum depending on employment classification. Employees are not reimbursed for accumulated sick leave. Payments made to terminated employees for accumulated leave are charged as expenditures/expenses, primarily in the General Fund, Special Revenue Funds, and Proprietary Funds, when paid. Accumulated vacation, personal leave and compensatory time benefits at year-end are recorded as obligations in the statement of net assets and proprietary fund statements.

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JUNE 30, 2010

Reservations/Designations of Fund Balance In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance are not legally required, but represent the intent of the County’s administration to use fund balance for specific purposes in the future. Designations for subsequent years’ expenditures represent funds that will be used to finance, in part, the FY11 General Fund operating budget. Designations for revenue stabilization are intended to protect the County against future revenue shortfalls and may be used upon County Council approval only when certain criteria have been met. Restricted Net Assets The government-wide statement of net assets reports $57.713 million of restricted net assets, of which $39.878 million is restricted by enabling legislation. 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (expressed in thousands): Explanation of certain differences between the governmental fund balance sheet and the government-wide statement of net assets. The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and net assets – governmental activities as reported in the government-wide statement of net assets. One element of the reconciliation explains that “Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.” The details of this $1,106,799 difference are as follows:

916,350$ 71,872 39,378 (1,920) (2,994) (3,940) 12,731 61,609 13,713

1,106,799$

General obligation debtCertificates of participation and mortgage payable Add: Issuance premium (to be amortized as reduction to interest expense) Less: Issuance discount (to be amortized as interest expense) Less: Deferred charge for issuance costs (to be amortized over life of debt) Less: Deferred charge on refunding (to be amortized as interest expense)Accrued interest payableCompensated absencesEstimated landfill closing costsNet adjustment to reduce fund balance - total funds to arrive at net assets of governmental activities

Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities. The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net assets of governmental activities as reported in the government-wide statement of activities. One element of the reconciliation explains that “Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.” The details of this $55,819 difference are as follows:

32


JUNE 30, 2010

Another element of the reconciliation states that “The net effect of various transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase net assets.” The details of this $11,266 difference are as follows:

Another element of the reconciliation states that “The issuance of long-term debt (e.g., bonds, certificates of participation) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.” The details of this $111,037 difference are as follows:

of the capital assets sold. (387)$

11,653

11,266$ activities.

they are not financial resources.

Net adjustment to increase net changes in fund balances - totalgovernmental funds to arrive at changes in net assets of governmental

proceeds from the sale increases financial resources. Thus, the change in net assets differs from the change in fund balance by the net book value

Donations and transfers in of capital assets increase net assets in the statement of activities, but do not appear in the governmental funds because

In the statement of activities, only the gain/(loss) on the sale or disposal of capital assets is reported. However, in the governmental funds, the

126,734$ (70,915)

55,819$ total governmental funds to arrive at changes in net assets of governmental activities

Capital outlayDepreciation expense

Net adjustment to increase net changes in fund balances -

Debt issued or incurred:General obligation debt (174,970)$ Add premium (725) Less discount 2,002 Less debt issuance costs 918

Principal repayments:General obligation debt 53,995 Certificates of participation 7,650 Mortgage payable 93

Net adjustment to decrease net changes in fund balances - totalgovernmental funds to arrive at changes in net assets of governmental activities (111,037)$

33


JUNE 30, 2010

Another element of the reconciliation states that “Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.” The details of this $1,152 difference are as follows:

3. CASH, INVESTMENTS AND SECURITIES LENDING: The County maintains a cash and investment pool that is available for use by all funds, except for the fiduciary funds. Each fund’s portion of this pool is reported on the statement of net assets as “Cash and investments.” The fiduciary funds investments are held and managed separately from those of other County funds. Deposits The County maintains cash balances, which are covered by FDIC insurance and collateral held at the Federal Reserve in the County’s name. The component units’ cash in banks are covered either by FDIC insurance or the County’s blanket collateral coverage. At June 30, 2010, the carrying amounts of cash for the primary government and its component units were $36.775 million and $7.471 million respectively. Investments Internal Investment Pool (the “Pool”) - The County has adopted an investment policy to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the cash flow demands of the County and conforming to all state and local statutes governing the investment of public funds. Permissible investments include U.S. Government obligations, U.S. Government agency obligations, money market mutual funds, repurchase agreements, banker’s acceptances, commercial paper (no more than 10% of the portfolio) and the Maryland Local Government Investment Pool (MLGIP) that is administered by the State Treasurer. Repurchase agreements are collateralized according to Maryland State Investment Code and marked to market daily. Pension Trust Funds and Other Post Employment Benefits (“OPEB”) – As provided in Article 5, Title 1 and § 10-14-106 of the Baltimore County Code, the Board of Trustees of the Employees’ Retirement System (the “System”) is empowered to invest the System’s and OPEB’s assets jointly and to take appropriate action regarding the investment, management and custodianship of the System’s and OPEB’s plan assets. The System’s and OPEB’s investment policy targets 26% in U.S. equities, 13% in international equities, 26% in core-plus fixed income investments, 5% in real estate equity, 5% in hedge funds, 5% in private equities, 5% in real assets and 15% in Global Asset Allocation Funds. Certain System and OPEB investment managers have invested in the following types of instruments: asset backed securities, warrants, variable rate securities and interest rate swaps, U.S. Treasury interest and principal strips, U.S. Treasury futures and options, and collateralized mortgage obligations. The System’s and OPEB’s fixed income managers primarily acquire these types of instruments to increase investment yield and/or decrease investment risk. Open Futures Contract exposure was $7,032,320 for the System’s and OPEB’s portfolio at the fiscal year ended June 30, 2010. The Police, Fire and Widows’ Pension Plan (the "Pension Plan"), funded through the sale of bonds, invests primarily in fixed income securities.

(361)$ (246) (363) (280)

Amortization of deferred charge on refunding (1,624) 4,108

(82)

1,152$

Increase in compensated absencesIncrease in accrued interestIncrease in landfill closure and post-closure costsAmortization of issuance costs

governmental activities

Amortization of premiums

Net adjustment to increase net changes in fund balances - totalgovernmental funds to arrive at changes in net assets of

Amortization of discounts

34


JUNE 30, 2010

Investments for the reporting entity as of June 30, 2010 are as follows (in thousands):

Securities Lending Transactions - The System’s, the OPEB Plan’s and the Pension Plan’s policies authorize the lending of their securities to broker-dealers and other entities with a simultaneous agreement to return the collateral for the same securities in the future. The System’s, the OPEB Plan’s and the Pension Plan’s custodian may lend U.S. government and agency securities, corporate bonds and stocks for collateral in the form of cash, other securities and irrevocable bank letters of credit. Collateral securities, letters of credit and cash are initially pledged at 102% of the market value of the securities lent. Additional collateral is to be provided by the next business day if the collateral value falls to less than 100% of the market value of the securities lent. The System, the OPEB Plan and the Pension Plan did not impose any restrictions during the fiscal year on security loans the custodian made on its behalf. The System, the OPEB Plan and the Pension Plan at year-end had no credit risk exposure to borrowers because the amounts owed to borrowers exceed the amounts the borrowers owe. The System, the OPEB Plan, the Pension Plan or the borrower can terminate securities loans on demand. Cash collateral is invested in the lending agent’s short-term investment pool, which at year-end had a weighted average maturity of 13 days. The System, the OPEB Plan and the Pension Plan cannot pledge or sell collateral securities received unless the borrower defaults. The collateral held and the fair value of securities on loan as of June 30, 2010 totaled $103.672 million and $100.408 million, respectively.

Investments The Pool The System OPEB Plan Pension

Plan Total Primary Government

Component Units Reporting Entity

U.S. securities and agenciesNot on securities loan -$ 143,846$ 17,981$ -$ 161,827$ -$ 161,827$ On securities loan for

securities or cash collateral - 21,696 2,712 - 24,408 - 24,408 MLGIP 13 - - - 13 21,205 21,218 Municipal bonds - 1,255 157 37,009 38,421 - 38,421 Foreign bonds - 28,473 3,559 5,621 37,653 - 37,653 Corporate bonds

Not on securities loan - 120,254 15,032 - 135,286 - 135,286 On securities loan for

securities or cash collateral - 7,294 912 - 8,206 - 8,206 Bond mututal funds - 177,205 22,151 8,162 207,518 - 207,518 Money market funds 175,379 41,429 5,179 6,965 228,952 12,178 241,130 Real estate equity funds - 62,671 7,834 - 70,505 - 70,505 Stocks

Not on securities loan - 301,043 37,631 - 338,674 - 338,674 On securities loan for

securities or cash collateral - 60,261 7,533 - 67,794 - 67,794 Stock mutual funds - 342,894 42,862 11,430 397,186 - 397,186 Private equity funds - 85,406 10,676 - 96,082 - 96,082 Hedge funds - 94,550 11,819 - 106,369 - 106,369 Real asets - 32,688 4,086 - 36,774 - 36,774 Global Asset Allocation fund - 285,175 35,648 - 320,823 - 320,823 Securities lending short-term

collateral investment pool - 89,734 11,217 - 100,951 - 100,951 Other - - - - - 1,108 1,108 Total 175,392$ 1,895,874$ 236,989$ 69,187$ 2,377,442$ 34,491$ 2,411,933$

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JUNE 30, 2010

The following is a listing of the OPEB Plan’s and the Pension Trust Funds’ fixed income investments of bonds, short-term investments and related maturity schedule (in thousands):

Investment Maturities (in years)

Investment Type Fair Value Less than 1 1 - 4.9 5 - 9.9 10 - 19.9 20 - 30More than

30The SystemU.S. Government Obligations 101,706$ 34$ 21,420$ 33,806$ 19,516$ 23,619$ 3,311$ U.S. Agency Securities 63,836 2,492 6,609 19,797 10,059 24,879 - Municipal Bonds 1,255 - - - - 148 1,107 Corporate Debt 127,548 6,456 31,932 26,870 18,802 24,367 19,121 Bond Mutual Funds 177,205 - - 177,205 - - - Foreign Debt 28,473 16,537 2,618 6,644 788 1,166 720 Total 500,023 25,519 62,579 264,322 49,165 74,179 24,259

OPEB PlanU.S. Government Obligations 12,713 4 2,677 4,226 2,440 2,952 414 U.S. Agency Securities 7,980 312 826 2,475 1,257 3,110 - Municipal Bonds 157 - - - - 19 138 Corporate Debt 15,944 807 3,992 3,359 2,350 3,046 2,390 Bond Mutual Funds 22,151 - - 22,151 - - - Foreign Debt 3,559 2,067 327 830 99 146 90 Total 62,504 3,190 7,822 33,041 6,146 9,273 3,032

Pension PlanMunicipal Bonds 37,009 2,438 8,048 12,620 11,425 2,478 - Bond Mutual Funds 8,162 - - - 8,162 - - Foreign Debt 5,621 - 2,500 - - - 3,121 Total 50,792 2,438 10,548 12,620 19,587 2,478 3,121 Total Primary Government 613,319$ 31,147$ 80,949$ 309,983$ 74,898$ 85,930$ 30,412$

Interest Rate Risk – To the extent possible, the Pool attempts to match investments with anticipated cash flow requirements. Unless matched to specific cash flow, the Pool will not directly invest in securities maturing more than one year from the date of purchase. The Pension Trust Funds’ and the OPEB Plan’s policy guidelines do not address limits on investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

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JUNE 30, 2010

Credit Risk – The Pool’s, the Pension Trust Funds’ and the OPEB Plan’s investment policies are to apply the prudent-person rule: Investments are made as a prudent person would be expected to act with discretion and intelligence, to seek reasonable income, preserve capital and in general, avoid speculative investments. As of June 30, 2010, the Pension Trust Funds’ and the OPEB Plan’s fixed income investments had the following risk characteristics:

Foreign Currency Risk – The System’s and the OPEB Plan’s exposure to foreign currency risk is derived from its positions in foreign currency-denominated common stock and fixed asset investments. The System’s and the OPEB Plan’s exposure to foreign currency risk is as follows:

Foreign Investments/Forward Exchange Contracts – Foreign investments include equity and fixed income securities. In conjunction with certain foreign investments, the System and the OPEB Plan has entered into forward exchange contracts to sell or purchase certain foreign currencies at specified rates at stated dates. The System and the OPEB Plan continue to invest in similar contracts. The Pension Trust Funds’ and OPEB’s investment policy guidelines include a section on derivatives, which speaks to the use of futures, forwards and other derivative instruments and securities. These guidelines strictly prohibit the use of derivatives to create leverage, create exposure to currencies and securities

Fair Value (in thousands)Currency The System OPEB Plan Total

Australian Dollar 3,551$ 563$ 4,114$ British Pound Sterling 13,097 2,076 15,173 Danish Krone 1,418 225 1,643 Euro Currency Unit 47,133 7,474 54,607 Hong Kong Dollar 9,187 1,457 10,644 Japanese Yen 28,097 4,456 32,553 Norwegian Krone 546 87 633 Singapore Dollar 1,345 213 1,558 South Korean W on 3,998 634 4,632 Swedish Krona 3,529 560 4,089 Swiss Franc 8,019 1,272 9,291

119,920$ 19,017$ 138,937$

The System OPEB Plan Pension Plan

Moody's Rating or

Comparible

Percent of Total

InvestmentsFair Value (in

thousands)

Percent of Total

InvestmentsFair Value (in thousands)

Percent of Total

InvestmentsFair Value (in thousands)

AAA 34.94% 174,729$ 34.94% 21,842$ 21.17% 10,753$ AA 1.72% 8,601 1.72% 1,075 22.02% 11,184 A 8.72% 43,599 8.72% 5,450 21.91% 11,127 BBB 5.65% 28,236 5.65% 3,530 4.36% 2,213 BB 1.31% 6,537 1.31% 817 0.00% - B 1.43% 7,153 1.43% 894 0.00% - CCC 1.16% 5,823 1.16% 728 0.00% - CC 0.19% 955 0.19% 119 0.00% - C 0.01% 61 0.01% 8 0.00% - D 0.14% 715 0.14% 89 0.00% - Not Rated 44.73% 223,614 44.73% 27,952 30.54% 15,515

Total 100.00% 500,023$ 100.00% 62,504$ 100.00% 50,792$

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JUNE 30, 2010

that would not otherwise be allowed, or increase the actual or potential risk of the portfolio. At June 30, 2010, the System’s and the OPEB Plan’s contracts to purchase and sell by foreign currencies were as follows:

Forward Exchange Contracts as of June 30, 2010(expressed in thousands)

Currency Purchases Unrealized LossEuro Currency Unit 57,497$ (89)$ Danish Krone 52,421 (67)

109,918$ (156)$

Futures contracts are standardized, exchange-traded contracts to purchase or sell a specific financial instrument at a predetermined price. Gains and losses on futures contracts are settled daily based on a notional (underlying) principal value and do not involve an actual transfer of the specific instrument. Because of daily settlement, the futures contracts have no fair value. The System and the OPEB Plan entered into certain futures contracts of which the notional value at June 30, 2010 are as follows:

Futures Contracts as of June 30, 2010(expressed in thousands)

Currency Buy Contracts Sell ContractsUS 10YR Note Future (CBT) -$ 13,086,531$ US 5YR Treas. NTS Future (CBT) - 1,530,547 US Ultra Bond (CBT) 7,596,805 -

The System and the OPEB Plan utilizes certain derivative instruments for the purpose of obtaining income or profit. The derivatives are subject to credit risks, interest rate risk, and foreign currency risk. The fair value balances and notional amounts of derivative instruments outstanding at June 30, 2010, classified by type and the changes in fair value of such derivative instruments for the year then ended are as follows:

Changes in Fair Value (expressed in thousands)

Fair Value as of June 30, 2010 (expressed in thousands)

Investment Derivatives Classification Amount Amount Notional ValueFutures -$ -$ 7,032,320$ Options Unrealized gain 21,506 17,377 3,308,766 Swaps Unrealized loss (417,346) (632,715) 3,807,479

Rationale for derivative strategies: The purpose of using futures and options is to hedge the portfolio to reduce risk and adjust exposure along the yield curve. A short position in total options reduces the portfolio's convexity in exchange for higher yield. A long position increases convexity in exchange for lower yields.

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JUNE 30, 2010

The effect of long and short treasury notes and bond futures is to shift the portfolio's duration to its target position.

The combined effect of Eurodollar and Euribor futures and options is to adjust exposure to the front portion of the yield curve.

Long and short call and put options on notes and bond futures are used to adjust portfolio convexity in exchange for higher yields.

Credit default indices and credit default swaps on individual names are used as an efficient, low cost way of adjusting credit exposure on the margin.

4. PROPERTY TAX:

The major portion of the County's property tax is levied each July 1 on the assessed value listed as of that date for all real and personal property located in the County. Assessed values are established by the Maryland Department of Assessments and Taxation at one hundred percent of estimated market value. The assessed value of taxable real and personal property in the County for fiscal year 2010 was $89.4 billion. The property tax rate for the year ended June 30, 2010 was $1.10 for real property and $2.75 for personal property per $100 of assessed valuation. The current tax collections for the year were 99.6% of the tax levied. Property taxes are recorded as receivables in the General Fund at the levy date with appropriate allowances for estimated uncollectible amounts as described in Note 5. The full year property tax calendar is as follows: *July 1 - Full year levy assessed for current fiscal year. *July 31 - Bills paid during July are granted a 1% discount. August 31 - Bills paid during August are granted a ½% discount.

September 30 - First semiannual installment is due if eligible property owners elect the semiannual payment option for real property taxes.

October-April - Delinquent taxes accrue interest at the rate of 1% a month from October 1 to date of payment. December 1 - Second installment due on real property taxes if paying on a semiannual basis. June - Delinquent real properties are sold at the annual tax sale. *A 1% discount is granted if paid within 30 days, for bills dated other than July.

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5. RECEIVABLES (in thousands): Receivables as of June 30, 2010 for the County’s major funds, Internal Service Funds, and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:

Gifts Consolidated Nonmajorand Public Improvement Metropolitan and Other Total

General Grants Construction District Funds ReceivablesProperty taxes 9,711$ -$ -$ -$ -$ 9,711$ Accounts 13,906 - - 9,249 3,640 26,795 Intergovernmental 128,154 17,170 5,390 1,905 - 152,619 Assessments 1,578 - 6,810 157,301 - 165,689 Loans - 37,562 - - 11,934 49,496 Interest 77 - - - - 77 Total receivables 153,426 54,732 12,200 168,455 15,574 404,387

uncollectible accounts (2,178) (20,644) - - - (22,822) Net total receivables 151,248$ 34,088$ 12,200$ 168,455$ 15,574$ 381,565$ Amounts not scheduledfor collection duringthe subsequent year 1,363$ 16,168$ 5,353$ 141,490$ 10,402$ 174,776$

At June 30, 2010, the County has recorded $37.562 million of outstanding loans receivable in the Gifts and Grants Fund. These receivables are for loans made to residents and developers to acquire, rehab, or repair low-income housing units or to provide funds for settlement costs to qualified first-time home buyers under various federally funded financial assistance programs. Approximately $20.644 million of these loans are offset by an allowance for uncollectible accounts because collections are highly uncertain. In many cases, the loan repayment is forgiven if the resident/developer complies with certain federal requirements, which may include residing in the property for a stated number of years. Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not earned. The various components of deferred revenue and unearned revenue reported in the governmental funds as of June 30, 2010 were as follows:

Unavailable Unearned Total7,047$ 540$ 7,587$

86,623 - 86,623 28,852 - 28,852 8,371 - 8,371

- 13,740 13,740 130,893$ 14,280$ 145,173$

Grant funds received prior to meeting all eligibility requirementsTotal deferred/unearned revenue for governmental funds

Property taxes receivableIncome taxesEconomic and community development loansSpecial assessments not yet due

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6. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (in thousands): The composition of interfund balances as of June 30, 2010 is as follows:

Interfund transfers for the fiscal year ended June 30, 2010 were as follows:

Transferred to

ConsolidatedGifts Public Internaland Improvement Service

Transferred from General Grants Construction Funds TotalGeneral -$ 7,352$ 33,123$ -$ 40,475$ Gifts and Grants 985 - - 346 1,331 Consolidated Public

Improvement Construction 98,552 479 - - 99,031 Nonmajor Governmental Funds 18,072 - - - 18,072 Internal Service Funds 344 - - - 344 Total transfers 117,953$ 7,831$ 33,123$ 346$ 159,253$

The transfers from the General Fund to the Consolidated Public Improvement Construction Fund are pay-as-you-go funding for capital projects. The transfers from the Gifts and Grants Fund to the General Fund are unused prior years County matching funds. Respective transfers of $98.552 million and $18.072 from the Consolidated Public Improvement Construction Loan Fund and the Economic Development Revolving Loan Fund of prior pay-as-you-go funding was returned to the General Fund to mitigate significant losses in income tax revenues. The transfers of $0.344 million from the Self-Insurance Program Fund to the General Fund are investment income transfers on pooled cash. The remaining transfers are various funding contributions for operations. Receivables and payables between the primary government and the component units do not equal due to timing differences.

Receivable fund Payable fund Purpose AmountSelf-Insurance Program Vehicle Operation and Maintenance Deficit cash balance 11,456$ General Consolidated Public Improvement Deficit cash balance 169,456

Total 180,912$

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7. CAPITAL ASSETS (in thousands): A summary of the primary government’s changes in capital assets for the year ended June 30, 2010 is reported below:

Beginning EndingBalance Increases Decreases Balance

Governmental activitiesCapital assets not being depreciated:Land 236,396$ 9,573$ (4)$ 245,965$ Construction in progress 276,923 102,856 (75,417) 304,362 Total capital assets not being depreciated 513,319 112,429 (75,421) 550,327

Capital assets being depreciated:Buildings and improvements 437,580 11,497 (268) 448,809 Machinery and equipment 104,564 16,217 (2,217) 118,564 Vehicles 109,590 14,410 (9,445) 114,555 Infrastructure 2,223,971 64,983 2,288,954 Total capital assets being depreciated 2,875,705 107,107 (11,930) 2,970,882

Less accumulated depreciation for:Buildings and improvements (115,411) (10,792) 155 (126,048) Machinery and equipment (64,817) (8,843) 2,406 (71,254) Vehicles (61,057) (9,541) 8,235 (62,363) Infrastructure (996,357) (46,082) - (1,042,439) Total accumulated depreciation (1,237,642) (75,258) 10,796 (1,302,104)

Total capital assets being depreciated, net 1,638,063 31,849 (1,134) 1,668,778

Governmental activities capital assets, net 2,151,382$ 144,278$ (76,555)$ 2,219,105$

Beginning EndingBalance Increases Decreases Balance

Business-type activitesCapital assets not being depreciated:Land 1,306$ -$ -$ 1,306$ Construction in progress 210,826 87,115 (68,361) 229,580 Total capital assets not being depreciated 212,132 87,115 (68,361) 230,886

Capital assets being depreciated:Buildings and improvements 135,468 8,723 - 144,191 Machinery and equipment 1,650 105 (21) 1,734 Vehicles 9,930 736 (300) 10,366 Infrastructure 931,805 42,782 974,587 Total capital assets being depreciated 1,078,853 52,346 (321) 1,130,878

Less accumulated depreciation for:Buildings and improvements (54,187) (3,645) - (57,832) Machinery and equipment (1,012) (110) 21 (1,101) Vehicles (5,900) (681) 300 (6,281) Infrastructure (245,741) (16,251) - (261,992) Total accumulated depreciation (306,840) (20,687) 321 (327,206)

Total capital assets being depreciated, net 772,013 31,659 - 803,672

Business-type activities capital assets, net 984,145$ 118,774$ (68,361)$ 1,034,558$

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Depreciation expense was charged to primary government functions as follows:

A summary of the component units’ changes in capital assets is reported below:

11,507$ 6,464

44,261 1,481 7,155

47

4,343 75,258$

20,687$ 20,687$ Total depreciation expense - business-type activities

Business-type activities:Water and sewer services, which include the depreciation of infrastructure assets

Capital assets held by the County's internal service funds is charged to the various activites based on their usage of the assets.Total depreciation expense - governmental activities

of infrastructure assetsHealth and human servicesCulture and leisure servicesEconomic and community development

Governmental activities:General governmentPublic safetyPublic works, which includes the depreciation

Beginning Ending Balance Increases Decreases Balance

Board of Education:Capital assets not being depreciated:Land 25,578$ 3,276$ -$ 28,854$ Construction in progress 192,131 101,893 (55,795) 238,229 Total capital assets not being depreciated 217,709 105,169 (55,795) 267,083

Capital assets being depreciated:Buildings 1,159,429 53,628 - 1,213,057 Improvements other than buildings 58,599 2,340 - 60,939 Equipment and vehicles 118,718 13,724 (7,126) 125,316 Total capital assets being depreciated 1,336,746 69,692 (7,126) 1,399,312

Less accumulated depreciation (441,301) (46,955) 7,006 (481,250)

Total capital assets being depreciated, net 895,445 22,737 (120) 918,062

Board of Education capital assets, net 1,113,154$ 127,906$ (55,915)$ 1,185,145$

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8. LONG-TERM OBLIGATIONS:

The County’s principal long-term obligations are general obligation bonds and commercial paper bond anticipation notes (BANs) issued to finance the construction of county-wide public capital projects, water and sewer facilities within the County's Metropolitan District, and pension obligations for police officers and firefighters hired prior to October, 1959 and their spouses. The County’s full faith, credit and unlimited taxing power are irrevocably pledged to the payment of the principal and interest of these bonds and notes. Other long-term obligations include the accrued liability for vested compensated absences, estimated landfill closing costs, certificates of participation and a mortgage payable. The County considers all non-proprietary funds vested compensated absences to be long-term debt. Of the primary government's general long-term debt, only the redemption of the BANs and the liability for landfill closing costs are expected to be paid with bond proceeds.

Beginning Ending Balance Increases Decreases Balance

Community College:Capital assets not being depreciated:Land 4,798$ -$ -$ 4,798$ Construction in progress 6,587 23,197 (2,506) 27,278 Total capital assets not being depreciated 11,385 23,197 (2,506) 32,076

Capital assets being depreciated:Buildings and improvements 119,503 2,734 - 122,237 Infrastructure 24,082 12 - 24,094 Equipment and vehicles 19,814 948 - 20,762 Library materials 5,722 347 - 6,069 Total capital assets being depreciated 169,121 4,041 - 173,162

Less accumulated depreciation (78,551) (5,978) - (84,529)

Total capital assets being depreciated, net 90,570 (1,937) - 88,633

The Community College of Baltimore County capital assets, net 101,955$ 21,260$ (2,506)$ 120,709$

Beginning Ending Board of Library Trustees: Balance Increases Decreases BalanceCapital assets being depreciated:Equipment and vehicles 10,320$ 159$ 10,479$ Circulation materials 16,764 5,437 (5,602) 16,599 Total capital assets being depreciated 27,084 5,596 (5,602) 27,078

Less accumulated depreciation (16,970) (5,894) 5,602 (17,262)

Board of Library Trustees capital assets, net 10,114$ (298)$ -$ 9,816$

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JUNE 30, 2010

The County Charter authorizes the County Council by appropriate resolution to issue bonds, other than Metropolitan District bonds, up to a debt limit of 4% of the County’s assessable property base, and Metropolitan District bonds up to a debt limit of 3.2% of the District’s assessable property base. Information related to these limitations is as follows:

General obligation debt issuances require approval by voter referendum. Approved and unissued general obligation bonded debt totaled $732,269,881 as of June 30, 2010, comprised of $269,443,881 for public schools, $402,580,000 for public facilities and $60,246,000 for the Community College. Appropriated and unissued Metropolitan District bonded debt totaled $480,803,525 at June 30, 2010. On November 10, 2009, the County settled the issuance of Metropolitan District General Obligation Bonds (Federally Taxable – Issuer Subsidy – Build America Bonds) in the amount of $36,000,000 (72nd Issue – Series A) and $70,600,000 (72nd Issue – Series B). The Metropolitan District 72nd Issue – Series A Bonds are due November 1 in each of the years 2010-2019 inclusive, and bear a true interest cost rate of 2.28% net of federal subsidy payments. The Metropolitan District 72nd Issue – Series B bonds are due November 1 in each of the years 2020-2039 inclusive, and bear a true interest cost rate of 3.67% net of federal subsidy payments. On November 10, 2009, the County settled the issuance of Consolidated Public Improvement General Obligation Bonds (Federally Taxable – Issuer Subsidy – Build America Bonds) in the amount of $60,000,000 (2009 – Series A) and $63,000,000 (2009 – Series B). The Consolidated Public Improvement (2009 – Series A) bonds are due November 1 in each of the years 2010-2019 inclusive, and bear a true interest cost rate of 2.31% net of federal subsidy payments. The Consolidated Public Improvement (2009 – Series B) bonds are due November 1 in each of the years 2020-2029 inclusive, and bear a true interest cost rate of 3.39% net of federal subsidy payments. Under the American Recovery and Reinvestment Act of 2009, the County will receive federal subsidy payments from the U.S. Treasury of 35% of the amount of the interest payable on the bonds. On November 10, 2009, the County also settled the issuance of $32,570,000 Consolidated Public Improvement General Obligation Bonds (2009 – Series C) (Federally Taxable – Issuer Subsidy – Recovery Zone Economic Development Bonds). The bonds are due November 1 in each of the years 2010-2029 inclusive, and bear a true interest cost rate of 2.55% net of federal subsidy payments. Under the American Recovery and Reinvestment Act of 2009, the County will receive federal subsidy payments from the U.S. Treasury of 45% of the amount of the interest payable on the bonds. On November 5, 2009 the County through a negotiated sale, settled the issuance of $19,400,000 Consolidated Public Improvement Bonds (2009 Series – D) Qualified School Construction Bonds (Tax Credit Bonds), with a tax credit rate of 6.15%, a price of 89.68% and a maturity date of September 15, 2025. The County intends to deposit annual installments into a sinking fund account to be held in trust by an escrow agent. The County expects to use the funds in the sinking fund account for the repayment of the principal of the bonds upon maturity.

As of June 30, 2010, the County had $174.9 million Consolidated Public Improvement Bond Anticipation Commercial Paper Notes outstanding (CPI CP Notes), and $106.5 million Metropolitan District Bond Anticipation Commercial Paper Notes outstanding (Metro District CP Notes). During FY 2010, the County paid off $100,000 of CPI CP Notes and $100,000 of Metro District CP Notes. The CP Notes are sold with an initial maturity of up to 270 days, and upon maturity they are refinanced. This remarketing is backed for liquidity purposes by a line of credit, the terms of which provide that no principal repayments are due by the County until the completion of the agreement. On April 3, 2007, the County entered into a seven-year liquidity agreement for $200 million with BNP Paribas, which will be in effect until April 3, 2014. On August 12, 2008, the County entered into a second three-year liquidity agreement for $81.6 million with BNP Paribas, which will be in effect until August 12, 2011. The weighted-average maturity of the CP Notes for FY

(in thousands)

General BondsMetropolitan

DistrictLegal limitation for the borrowing of 3,574,940$ 2,506,665$

funds and issuance of bondsGeneral obligation debt outstanding 916,350 765,337

applicable to debt limit

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JUNE 30, 2010

2010 was 68 days and interest rates ranged from 0.14% to 0.65%.

During fiscal year 2010, the County issued $532,202 in Metropolitan District bonds through the Maryland Water Quality Revolving Loan Fund. The Fund subsidizes the interest rate on sewer and water projects. As of June 30, 2010, the balance outstanding was $74,011,646. The County defeased certain general obligation bonds in prior years by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the County’s financial statements. As of June 30, 2010, $106,040,000 of bonds outstanding from refundings are considered defeased.

The County issues debt to finance the construction of certain capital facilities of its component units and for major water and sewer projects done in conjunction with the City of Baltimore (the “City”), which decreases the “Unrestricted” net asset component in the statement of net assets. The following summarizes these situations where the County is reporting the debt in its financial statements, while the corresponding assets are reported by the other reporting entity.

• The Board of Education and the Community College have no authority to issue bonded debt. That authority rests with the County subject to voter approval. The County had $329.173 million of its net Consolidated Public Improvement general obligation bonds outstanding (net of unamortized premiums and deferred charges) that is related to capital facilities of the component units as of June 30, 2010.

• The Metropolitan District Act requires the City to provide water to the County’s Metropolitan District. The City

also treats sewage from the Metropolitan District at cost. The County has agreed to pay the City on a pro-rata basis for construction of certain City owned sewer and water capital projects that serve the Metropolitan District. The County has contributed approximately $711.917 million towards these City owned facilities that are funded primarily with bond proceeds. The County estimates 40.79% of its net Metropolitan District general obligation bonds outstanding or $317.614 million is related to these facilities as of June 30, 2010.

At June 30, 2010, the County has accrued $13.71 million of estimated closure and postclosure care costs for its one active landfill in the Governmental Activities of the Statement of Net Assets. State and federal laws require the County to place a final cover on its open landfill when it stops accepting waste in approximately 2049 and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and postclosure costs generally will be paid only near or after the date that the landfill stops accepting waste, the County reports a portion of these costs as a liability in the Governmental Activities of the Statement of Net Assets based on the landfill capacity used as of the end of the fiscal year. The amount included in the landfill closure and postclosure care costs liability at June 30, 2010 represents the cumulative unspent amount reported to date based on the use of 50.9% of the estimated landfill capacity. The County will recognize the remaining estimated cost of closure and postclosure care of $13.2 million as the remaining estimated capacity is filled. The actual cost may differ due to inflation, changes in technology, or changes in regulations. The County intends to finance these costs primarily with bond proceeds in its Consolidated Public Improvement Construction Fund. Financial assurance provisions of federal regulations require owners and operators of municipal solid waste landfills to demonstrate that adequate funds will be readily available for the costs of closure, post closure care, and corrective action associated with their facilities. The County had demonstrated that it met the local government financial test assurance mechanism as of December 31, 2009 and has placed appropriate documents in the operating record of its active landfill. The County has participated in the issuance of economic development revenue bonds to provide financial assistance to private sector entities for the acquisition and construction of industrial and commercial facilities. The County is not obligated in any manner for repayment of the bonds, and therefore they are not reported as liabilities in the financial statements. The aggregate outstanding principal amount as of June 30, 2010 for bonds issued prior to July 1, 1996 could not be determined, however, the original issue amounts approximate $571.1 million. The aggregate principal amount payable for bonds issued after July 1, 1996 was $416.6 million at June 30, 2010.

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JUNE 30, 2010

Long-term liability activity for the year ended June 30, 2010 is as follows (in thousands):

Balance Balance Due WithinJuly 1, 2009 Increases Decreases June 30, 2010 One Year

Primary Government:Governmental activities:General obligation debt Consolidated public improvement bonds 574,235$ 174,970$ (46,640)$ 702,565$ 51,305$ Pension funding bonds 46,140 - (7,255) 38,885 7,080 Bond anticipation notes 175,000 - (100) 174,900 174,900

795,375 174,970 (53,995) 916,350 233,285 Add remaining original issue premium 39,771 725 (3,676) 36,820 - Less deferred amount on refunding (5,564) - 1,624 (3,940) - Less remaining original issue discount - (2,002) 82 (1,920) - Total general obligation debt 829,582 173,693 (55,965) 947,310 233,285

Certificates of participation 76,100 - (7,650) 68,450 7,990 Add remaining original issue premium 2,990 - (432) 2,558 - Total certificates of participation 79,090 - (8,082) 71,008 7,990

Other long-term liabilitiesMortgage 3,515 - (93) 3,422 101 Compensated absences 61,484 56,966 (56,602) 61,848 17,435 Claims payable 56,760 215,996 (211,436) 61,320 36,140 Estimated landfill closing costs 13,350 363 - 13,713 - Total other long-term liabilities 135,109 273,325 (268,131) 140,303 53,676

Total governmental activities long-term liabilities 1,043,781$ 447,018$ (332,178)$ 1,158,621$ 294,951$

Business-type activities:General obligation debt Metropolitan District bonds 585,648$ 107,132$ (33,943)$ 658,837$ 37,612$ Bond anticipation notes 106,600 - (100) 106,500 106,500

692,248 107,132 (34,043) 765,337 144,112 Add remaining original issue premium 18,264 450 (1,349) 17,365 - Less deferred amount on refunding (3,257) - 862 (2,395) - Total general obligation debt 707,255 107,582 (34,530) 780,307 144,112

Certificates of participation 4,000 - (600) 3,400 600 Add remaining original issue premium 192 - (31) 161 - Total certificates of participation 4,192 - (631) 3,561 600

Compensated absences 1,384 929 (813) 1,500 423 Total business-type activities long-term liabilities 712,831$ 108,511$ (35,974)$ 785,368$ 145,135$

Component Units:Board of Education: Compensated absences 18,588$ 12,460$ (11,259)$ 19,789$ 11,259$ Capital leases 17,071 8,177 (6,122) 19,126 6,193 Total Board of Education 35,659 20,637 (17,381) 38,915 17,452 Community College: Compensated absences 4,721 3,368 (3,077) 5,012 3,240 Board of Library Trustees: Compensated absences 1,039 5 - 1,044 1,044 Total component units long-term liabilities 41,419$ 24,010$ (20,458)$ 44,971$ 21,736$

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JUNE 30, 2010

General long-term debt currently outstanding as of June 30, 2010 is as follows:

Governmental Activities:( in thousands)

General Obligation Debt:Bonds

Original Unamortized Unamortized Carrying Maturity Interest Rate Issue Balance Premium/ Deferred Value

Dated Range Range Amount 6/30/20010 (Discount) Difference 6/30/201006/19/01 2002-2021 4.000 - 5.500 27,000$ 1,240$ -$ -$ 1,240$ 07/02/02 2003-2022 3.000 - 5.250 135,000 33,750 942 - 34,692 09/04/02 2003-2015 3.000 - 5.250 83,385 47,815 3,708 - 51,523 05/06/03 2004-2011 2.000 - 3.250 33,725 7,635 24 - 7,659 02/26/04 2005-2024 3.000 - 5.000 152,000 124,500 8,604 - 133,104 02/26/04 2009-2020 3.250 - 5.000 63,085 59,935 3,761 (2,121) 61,575 09/27/06 2007-2026 4.000 - 5.000 111,000 97,000 4,296 - 101,296 01/03/08 2009-2028 4.000 - 5.000 140,000 132,000 8,010 - 140,010 02/24/09 2009-2018 2.000 - 5.000 26,880 23,720 2,808 (1,187) 25,341 02/24/09 2009-2015 3.000 - 5.000 46,140 38,885 3,959 (632) 42,212 11/05/09 2010-2025 6.150 - 6.150 19,400 19,400 (1,920) - 17,480 11/10/09 2010-2029 0.650 - 5.650 155,570 155,570 708 - 156,278

993,185 741,450 34,900 (3,940) 772,410 Bond Anticipation Notes

01/03/08 2008-2010 0.450 - 2.150 75,000 75,000 - - 75,000 01/03/08 2008-2010 0.300 - 5.000 65,000 64,900 - - 64,900 08/12/09 2009-2010 0.450 - 1.570 35,000 35,000 - - 35,000

175,000 174,900 - - 174,900

Total General Obligation Debt 1,168,185$ 916,350$ 34,900$ (3,940)$ 947,310$

Certificates of Participation12/18/01 2002-2021 3.500 - 5.125 22,000$ 15,450$ 76$ -$ 15,526$ 06/01/04 2005-2014 3.000 - 5.000 42,500 20,000 991 - 20,991 08/12/09 2009-2018 3.250 - 5.000 34,700 33,000 1,491 - 34,491

Total Certificates of Participation 99,200$ 68,450$ 2,558$ -$ 71,008$

Mortgage12/30/05 2005-2012 7.770 - 7.770 3,784$ 3,422$ -$ -$ 3,422$

Total Mortgage 3,784$ 3,422$ -$ -$ 3,422$

* Refunding issue

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JUNE 30, 2010

Business-type Activities:(in thousands)

General Obligation Debt:Bonds

Original Unamortized Carrying Maturity Interest Issue Balance Unamortized Deferred Value

Dated Range Rate Range Amount 6/30/2010 Premium Difference 6/30/201011/27/90 1993-2013 4.894 - 4.894 9,498$ 1,554$ -$ -$ 1,554$ 12/04/91 1993-2012 4.458 - 4.458 4,071 488 - - 488 06/23/93 1995-2014 3.250 - 3.250 1,456 360 - - 360 11/04/94 1997-2016 3.500 - 4.750 20,902 8,210 - - 8,210 03/22/00 2001-2020 2.600 - 2.600 14,417 8,456 - - 8,456 06/19/01 2003-2031 4.000 - 5.500 98,000 42,000 - - 42,000 06/22/01 2003-2022 2.300 - 2.300 14,105 9,601 - - 9,601 06/26/02 2004-2023 2.000 - 2.000 7,006 4,886 - - 4,886 07/02/02 2003-2032 3.000 - 5.000 65,000 38,820 9 - 38,829 09/04/02 2003-2015 3.000 - 5.250 46,365 * 24,900 2,030 - 26,930 03/11/03 2004-2023 1.100 - 1.100 8,638 6,016 - - 6,016 05/06/03 2004-2011 2.000 - 3.250 11,565 * 2,540 7 - 2,547 02/26/04 2009-2019 3.250 - 5.000 38,645 * 36,830 2,493 (1,287) 38,036 02/26/04 2005-2035 3.000 - 5.000 48,000 40,000 1,766 - 41,766 07/16/04 2005-2025 1.200 - 1.200 7,990 5,258 - - 5,258 09/12/05 2006-2024 1.000 - 1.000 20,495 16,032 - - 16,032 09/27/06 2007-2036 4.000 - 5.000 89,000 80,000 330 - 80,330 07/31/07 2008-2027 1.000 - 1.000 14,750 13,051 - - 13,051 01/03/08 2009-2038 4.250 - 5.000 200,000 192,000 8,196 - 200,196 02/24/09 2009-2018 3.000 - 5.000 24,515 21,135 2,091 (1,108) 22,118 11/10/09 2010-2039 0.650 - 5.600 106,600 106,600 443 - 107,043 12/18/09 2011-2032 1.000 - 1.000 100 100 - - 100

851,118 658,837 17,365 (2,395) 673,807 Bond Anticipation Notes04/06/10 2010-2011 0.260 - 0.380 46,600 46,600 - - 46,600 05/03/10 2010-2011 0.280 - 0.350 60,000 59,900 - - 59,900

106,600 106,500 - - 106,500

Total General Obligation Debt 957,718$ 765,337$ 17,365$ (2,395)$ 780,307$

Certificates of Participation06/01/04 2005-2014 3.000 - 5.000 4,000$ 1,600$ 87$ -$ 1,687$ 08/12/09 2009-2018 3.250 - 5.000 2,000 1,800 74 - 1,874

Total Certificates of Participation 6,000$ 3,400$ 161$ -$ 3,561$

* Refunding issues

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JUNE 30, 2010

The following is a schedule of the primary government’s debt service payments for certain long-term debt as of June 30, 2010:

General Long-Term Debt( in thousands)

Fiscal Year Governmental ActivitiesEnded General Obligation Debt COPs & Other Long-term Debt Total Debt Service

June 30 Principal Interest Principal Interest Principal Interest2011 233,285$ 33,589$ 8,091$ 3,343$ 241,376$ 36,932$ 2012 59,090 29,673 11,350 2,977 70,440 32,650 2013 56,975 27,102 9,080 2,343 66,055 29,445 2014 53,825 24,614 10,125 1,917 63,950 26,531 2015 52,150 22,169 5,175 1,461 57,325 23,630 2016-2020 210,995 79,695 24,810 3,479 235,805 83,174 2021-2025 174,130 36,344 3,241 164 177,371 36,508 2026-2030 75,900 7,835 - - 75,900 7,835 Total 916,350$ 261,021$ 71,872$ 15,684$ 988,222$ 276,705$

Fiscal Year Business-type ActivitiesEnded General Obligation Debt COPs Total Debt Service

June 30 Principal Interest Principal Interest Principal Interest2011 144,112$ 29,262$ 600$ 150$ 144,712$ 29,412$ 2012 37,536 27,006 600 124 38,136 27,130 2013 35,579 25,600 600 97 36,179 25,697 2014 32,438 24,289 600 70 33,038 24,359 2015 30,718 23,002 200 42 30,918 23,044 2016-2020 140,143 97,031 800 79 140,943 97,110 2021-2025 115,926 70,561 - - 115,926 70,561 2026-2030 103,785 45,291 - - 103,785 45,291 2031-2035 83,800 21,268 - - 83,800 21,268 2036-2040 41,300 4,650 - - 41,300 4,650 Total 765,337$ 367,960$ 3,400$ 562$ 768,737$ 368,522$

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JUNE 30, 2010

9. COMMITMENTS: Leases The following is a schedule by years of future minimum rental payments for facilities and equipment under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of June 30, 2010 (in thousands):

The total rental expenditures for the year ended June 30, 2010, for all leases except those with terms of a month or less that were not renewed were approximately $7.2 million for the primary government and $8.1 million for the component units. Contracts and Commitments Contract commitments in the Consolidated Public Improvement Construction Fund, the Metropolitan District Fund, and the Gifts and Grants Fund amounted to approximately $93.4 million, $123.6 million, and $10.8 million, respectively, at June 30, 2010. Such amounts will be funded by future bond proceeds, approved federal and state grants, and future assessments. 10. LITIGATION: The County is a defendant in various suits claiming damages for personal injury and property damage in automobile and general liability cases, and various personnel actions. In addition, there are various other tort suits alleging violations of individual civil rights pending against the County as well as miscellaneous other litigation, mostly contract claims. Amounts claimed in some of these matters are substantial. In the opinion of the County Attorney, the County should prevail in most of said various tort suits, suits alleging violations of individual civil rights and in miscellaneous other litigation (although the outcome of litigation cannot be predicted with certainty). It is the further opinion of the County Attorney that the likelihood of the County incurring aggregate liability arising from such litigation in an amount that would be material in relation to its financial position is remote. 11. CONTINGENCIES: The County receives significant financial assistance from the U. S. Government and the State of Maryland in the form of grants. Entitlement to grant resources is generally conditioned upon compliance with terms and conditions of the grant agreements and applicable federal and state regulations, including the expenditure of the resources for eligible purposes. Substantially all grants are subject to financial and compliance audits in accordance with grantor requirements. Any disallowances as a result of these audits become a liability of the County. The County estimates that no material liabilities will result from such audits.

Year ending Primary ComponentJune 30 Government Units

2011 2,193$ 5,929$ 2012 2,043 5,661 2013 1,837 4,722 2014 1,711 3,300 2015 1,686 3,022

2016-2020 115 6,590 2021-2025 92 7,532 2026-2030 16 3,621

9,693$ 40,377$

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JUNE 30, 2010

The County is contingently liable for loans guaranteed through the Economic Development Revolving Financing Fund that aggregate approximately $.895 million as of June 30, 2010. A reservation of fund balance has been made for this amount. 12. RISK MANAGEMENT: The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; employee health and accident; and natural disasters. The County manages its risks internally and sets aside assets for claims settlement in an Internal Service Fund, the Self-Insurance Program Fund (SIPF). The County services all claims for risk of loss to which the County is exposed except as noted below. The SIPF allocates County claims payments by charging a “premium” to each fund, or component unit, based on the actuarially determined liability and SIPF net assets. The County purchases commercial insurance for claims that exceed 120% of projected health care claims and associated administrative expenses, and for real and personal property losses subject to policy deductibles. Settled claims have not exceeded this commercial health care excess coverage for the past three fiscal years. SIPF liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported. Since actual claim liabilities depend on complex factors such as inflation, changes in legal doctrines, and damage awards, the process used in computing claim liability results in an estimate. Certain liabilities are reevaluated periodically to take into consideration recently settled claims, the frequency of claims, and other economic and social factors. Liabilities for incurred losses to be settled by fixed or reasonably determinable payments over a long period of time are reported at their actual value and are not discounted. Changes in the balances of claim liabilities during fiscal years 2009 and 2010 were as follows (in thousands):

13. INDIVIDUAL FUND DISCLOSURE: At June 30, 2010, the Consolidated Public Improvement Construction Fund had a deficit fund balance of $209.354 million. This deficit will be eliminated by pay-as-you-go contributions from the General Fund and from bond proceeds. 14. BENEFIT PLANS: Employees’ Retirement System Plan Description: The Employees’ Retirement System of Baltimore County (the “System”) is a cost-sharing multiple-employer defined benefit public employee retirement system that acts as a common investment and administrative agent serving five entities including the County and certain employees of the Baltimore County Board of Education, Baltimore County Board of Library Trustees, the Community College of Baltimore County and the Baltimore County Revenue Authority. The System is not an employer. The System provides retirement and disability benefits, cost-of-living adjustments and death benefits to plan members and beneficiaries. The authority to establish and maintain the System is specified in Section 5-1-101 of the Baltimore County Code (the “Code”). The System is considered part of the County’s reporting entity and its financial statements are included in the County’s basic financial statements as a pension trust fund. The System is fiscally dependent on the County by virtue of the legislative and executive controls

Balance at Claims and Balance atFiscal Beginning Changes in Claim FiscalYear of Year Estimates Payments Year End

2009 56,809$ 202,642$ (202,691)$ 56,760$ 2010 56,760 215,996 (211,436) 61,320

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JUNE 30, 2010

exercised with respect to its operations, policies and administrative budget. In accordance with Section 5-1-238 of the Code, responsibility for the proper operation of the System is vested in an eight-member Board of Trustees (the “Board”), comprised of a combination of ex-officio and elected representatives. The general administration of the System is vested in the Director of Budget and Finance. At June 30, 2009, the date of the latest available actuarial valuation, System membership consisted of:

Retirees and beneficiaries currently receiving benefits General employees, correctional officers and deputy sheriffs 4,548 Firefighters and police officers 1,962 Terminated employees entitled to benefits but not yet receiving them General employees, correctional officers and deputy sheriffs 411 Firefighters and police officers 53 Total retirees and beneficiaries 6,974 Current employees Vested - Full-time employees General employees, correctional officers and deputy sheriffs 3,982 Firefighters and police officers 2,382 Non-vested - Full-time employees General employees, correctional officers and deputy sheriffs 1,802 Firefighters and police officers 539 Part-time employees Vested - General employees 595 Non-vested - General employees 472 Total active members 9,772 Non-vested terminations with account balances 43 Members on leave of absence General employees, correctional officers and deputy sheriffs 32 Firefighters and police officers 12 Total members on leave of absence 44 Grand Total 16,833

Employees, exclusive of firefighters and police officers, may become System members at any time within the first two years of employment. Employees must become System members at the end of the two-year period as a condition of employment except for elected officials, employees appointed to certain non-merit positions and part-time employees who have the option to join the System within the first two years. Selection of the option must be made within two years of employment. Section 5-1-203 of the Code provides that System members contribute a percentage of their salary to the System. Employees who terminate employment or die in service prior to meeting vesting eligibility are entitled to a refund of their contributions. Interest is credited on member contributions at the rate of 5% per annum. Employers are required to contribute an actuarially determined amount annually to finance the System as specified by Sections 5-1-203 and 5-1-257 of the Code. Members are eligible for a normal retirement for service based on age and/or years of creditable service. There is no mandatory retirement age for general employees and correctional officers. Firefighters and police officers must retire at age 60 unless approved for continuation of service by the Board on an annual basis. The County has adopted a Back DROP (Deferred Retirement Option Program), for police officers and firefighters under which eligible active members may elect to receive a lump sum payment at retirement in exchange for a reduced monthly benefit for life. The DROP period is between three and five years, effective with retirements that occurred on or after July

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JUNE 30, 2010

1, 2004. Police officers and firefighters hired on or after July 1, 2007 are not eligible to participate in the DROP. The County has adopted a Back Drop for correctional officers and deputy sheriffs hired prior to July 1, 2007. Eligible active members may elect to receive a lump sum payment at retirement in exchange for a reduced monthly benefit. The DROP period is between three and five years, effective with retirements that occur on or after July 1, 2010. Correctional officers and deputy sheriffs hired on or after July 1, 2007 are not eligible to participate in the DROP. The County has adopted a Forward Drop for general employees hired prior to July 1, 2007. Eligible active members may elect to receive a lump sum payment at retirement in exchange for a reduced monthly benefit. The DROP period is between five and ten years, effective with retirements that occur on or after July 1, 2012. General employees hired on or after July 1, 2007 are not eligible to participate in the DROP. An ordinary disability retirement can be granted to a member who can no longer perform their job due to a non-occupational related injury. A member, hired prior to July 1, 2007, must have five years of creditable service and be medically certified as incapacitated for continued performance of their duties. A member, hired on or after July 1, 2007, must have ten years of creditable service and be medically certified as incapacitated for continued performance of their duties. The ordinary disability retirement allowance is determined in accordance with Section 5-1-222 of the Code. An accidental disability retirement can be granted to a member who has been incapacitated for duty as a result of an occupational related injury. The accidental disability retirement allowance is determined in accordance with Section 5-1-225 of the Code. An ordinary death benefit is granted as a result of a member's death from non-occupational causes. A member's designated beneficiary or estate receives a lump sum payment of the member's contributions plus interest. Additionally, after one year of creditable service, the member's designated beneficiary or estate may receive a minimum one-time payment equal to 100% of the member's annual earnable compensation plus the member’s accumulated contributions. If a member was eligible for a service retirement or had 15 years of creditable service at the time of death, the spouse, if designated as beneficiary, may receive a retirement allowance based on service years equivalent to a 100% survivorship option. An accidental death benefit is granted as the result of death from an occupational related injury. The dependent beneficiary of a general employee may receive an allowance equal to 662/3% of average final compensation (AFC) plus the annuity as described below. The dependent beneficiary of a firefighter or police officer may receive an allowance equal to 100% of the annual earnable compensation at the time of death plus the annuity as described below. Retirement allowances are comprised of an annuity equal to the actuarial equivalent of the accumulated contributions plus a pension which together with the annuity shall provide a total allowance as provided for in the System’s plan. The retirement allowance is determined based on the AFC and number of years of creditable service. AFC is defined for the majority of the members as the rate of annual earnable compensation during the twelve or thirty-six consecutive calendar months of service affording the highest average. The normal retirement for service allowance is determined as follows: Employee designation Allowance formula for Vested Employees General employees (Hired prior to July 1, 2007)

1.82% of AFC times the number of years of creditable service for: (i) 30 years of creditable service or (ii) Age 65 with 5 years of creditable service or, (iii) Age 60 as of June 30, 2007 and attain 5 years of creditable service.

General employees hired prior to July 1, 2007, retiring at age 60 with less than 30 years of creditable service, will receive a blended benefit, (i.e. 1.82% of AFC times the number of years of creditable service earned prior to July 1, 2007, plus 1.43% of AFC times the number of years of creditable service earned on or after July 1, 2007).

General employees (Hired on or after July 1, 2007)

1.43% of AFC times the number of years of creditable service.

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JUNE 30, 2010

Appointed officials


Elected officials


Firefighters 2.5% of AFC times the number of years of creditable service up to 20 years, plus 2.0% of AFC for each year in excess of 20 years, and 3.0% of AFC for each year in excess of 30 years for service years on or after July 1, 2007. 2.0% of AFC times the number of years of creditable service – if less than 20 years of creditable service.

Correctional officers and Deputy Sheriffs

2.5% of AFC times the number of years of creditable service up to 20 years, plus 2.0% of AFC times the number of years of creditable service in excess of 20 years. If hired prior to July 1, 2007, with less than 20 years of creditable service at retirement: 1.82% of AFC times the number of years of creditable service earned prior to July 1, 2007,plus 1.43% of AFC times the number of years of creditable service earned after June 30,2007.

If hired on or after July 1, 2007, with less than 20 years of creditable service at retirement: 1.43% of AFC times the number of years of creditable service.

Police officers 2.5% of AFC times the number of years of creditable service up to 20 years, plus 2.0% of AFC for each year of creditable service in excess of 20 years, and 3.0% of AFC for each year of creditable service over of 25 years. The 3% accrual rate does not apply for years of creditable service earned prior to July 1, 2007.

2.0% of AFC times the number of years of creditable service – if less than 20 years of creditable service

In addition to the maximum retirement allowance, members may select one of six retirement allowance options to provide payments to a beneficiary upon the death of a retired member. A selection of an option, reduces the maximum allowance. Eligible police officers and firefighters, may select a 7th option that allows 50% of member’s retirement to continue to the original beneficiary at no cost to the employee. In accordance with Section 5-1-235 of the Code, post-retirement allowance adjustments may be granted to retirees who have been retired for more than 12 months, each July 1. The post-retirement allowance adjustment is equal to the increase in the Consumer Price Index - All Urban Consumers (CPI-U) for the previous calendar year, in an amount not to exceed 4%, provided sufficient investment income in excess of valuation requirements has accumulated in a Post-Retirement Increase Fund. The maximum balance that can be maintained in the Post-Retirement Increase Fund is twice the cost of a 4% COLA Contributions System members contribute a percentage of their salary to the System determined by County Code. The contribution rates for members hired prior to July 1, 2007 is actuarially determined based on the member’s age at enrollment and employee classification. Contribution rates for members hired on or after July 1, 2007 are fixed based on employee classification. The participating employers are required to contribute on an actuarially determined basis. Per Section 5-1-203 of the Code, contribution requirements of the plan members and the participating employers are established and may be amended by the Board. FY 2010 Schedule of Employers’ Contributions is shown below (in thousands):

Fiscal Year Ended

June 30

Annual Required

Contribution

Percentage Contributed

2010 $57,976 100%

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JUNE 30, 2010

Funding Policy A pension plan is considered adequately funded when sufficient assets are available to meet all expected future obligations to participants. The System funding objective is to meet long-term benefits through annual employer contributions that remain approximately level as a percentage of covered payroll. The greater the level of funding, the larger the ratio of assets accumulated to the actuarial accrued liability and the greater the level of investment potential. The advantage of a well-funded plan is that participants are confident that sufficient assets are available for the payment of current and future member benefits. The Schedule of Funding Progress as of the June 30, 2009 actuarial valuation (latest available) is shown below (in thousands).

Actuarial Valuation

Date June 30

Actuarial Value of Assets

(a)

Actuarial Accrued

Liability (AAL)(b)

Unfunded (Excess of)

AAL (UAAL)

(b-a)

Funded Ratio (a/b)

Covered Payroll

(c)

UAAL

(Excess of) as a % of Covered Payroll ((b-a)/c)

2009 $2,143,616 $2,599,670 $456,054 82.5% $505,908 90.0% The County's commitment to provide a financially sound retirement plan for its members is illustrated on two schedules found in the Required Supplementary Information of the Financial Section of this report. The six year “Schedule of Funding Progress,” includes historical trend information of plan net assets as a percentage of the actuarial accrued liability, which provides one indication of the System’s funding status on a going-concern basis. Analysis of this percentage over time indicates whether the System is becoming financially stronger or weaker. Trends in the unfunded actuarial accrued liability (or excess of) as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the System’s progress made in accumulating sufficient assets to pay benefits when due. The six year “Schedule of Employer Contributions” includes historical trend information about the annual required contributions (ARC) of the employers and the contributions made by the employers in relation to the ARC. The System’s percentages indicate a financially sound retirement system. The information below is based on the latest actuarial valuation available as of June 30, 2009. The actuarial methods and assumptions used to determine the funded status and the ARC is presented below:

Valuation Date: June 30, 2009 Actuarial Cost Method: Projected Unit Credit Normal Cost Allocation: Service Amortization Method: Level percent closed Remaining Amortization Period: 29 years Asset Valuation Method*: 5-year smoothed market Actuarial Assumptions: -Investment Rate of Return** 7.875% -Projected Salaried Increases** 3.00 – 7.50% -Cost-of-Living Adjustments*** None -Mortality Rates Based on the 1995 George B. Buck

Mortality Table *Actuarial Asset Method was revised to remove 14% Corridor Around Market Value and the Smoothing period changed from four to five years for the June 30, 2009 valuation. **Includes Inflation at 3%. ***Increases equal to the CPI up to a maximum of 4% are granted only if sufficient reserves have

accumulated in the Post-Retirement Increase Fund Balance Account.

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JUNE 30, 2010

The condensed financial statements of the Employees’ Retirement System as of and for the year ended June 30, 2010 are as follows (in thousands):

Statement of Plan Net AssetsEmployees' Retirement System

As of June 30, 2010

ASSETSCash and cash equivalents 41,850$ Investments, at fair value: 1,764,711 Collateral for loaned securities 89,734 Receivables:

Accrued interest & dividend income 3,002 Receivable for investments sold 25,113 Receivables other 1,224

Total assets 1,925,634

LIABILITIESCollateral for loaned securities 91,449 Investments purchased 45,464 Investment expenses payable 2,061 Other 389

Total liabilities 139,363

NET ASSETSNet assets held in trust for benefits 1,786,271$

Statement of Changes in Plan Net AssetsEmployees' Retirement System

For the year ended June 30, 2010


Employer 57,976$ Employee 33,236

Total contributions 91,212 Investment earnings:

Net increase in the fair value of plan assets 232,230 Interest and dividends 35,258 Securities lending loss (1,303) Investment expenses (11,380)

Net investment gain 254,805 Total additions 346,017

DEDUCTIONSBenefits 150,704 Other 3,334

Total deductions 154,038 Change in net assets 191,979 Net assets at beginning of the year 1,594,292 Net assets at end of the year 1,786,271$

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JUNE 30, 2010

Police, Fire and Widows’ Pension Plan The County is the administrator of a closed single-employer defined benefit pension plan (the “Pension Plan”) providing benefits to County firefighters and police officers hired prior to October 1, 1959 and their spouses. The Pension Plan was created pursuant to the County Code. The Pension Plan has not added any new members since October 1, 1959. The pension allowance for retired firefighters and police officers is one-half of the salary of a current employee with the same rank the pensioner held at the time of his retirement. The pension allowance to a widow of a deceased pensioner is one-fourth of the base salary of an active member of the County Police and Fire departments. The condensed financial statements as of and for the year ended June 30, 2010 are as follows (in thousands):

Police, Fire, and Widows' Pension PlanAs of June 30, 2010

ASSETSCash and cash equivalents 6,966$ Investment securities 62,222 Interest and dividends receivable 653 Receivable for investments sold 988

Total assets 70,829

LIABILITIESAccounts payable 23 Investments purchased 23

Total liabilities 46

NET ASSETSNet assets held in trust for pension benefits 70,783$

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JUNE 30, 2010

Other Pension Plans The County provides supplemental pension benefits through General Fund appropriations to certain judges, judges’ widows and families of members of volunteer fire and ambulance companies killed in the line of duty. The respective costs of these plans are not significant. Substantially all employees of the component units who do not participate in the System participate in the State of Maryland Teachers’ Retirement and Pension Systems. Employer contributions to these systems for the year ended June 30, 2010, 2009 and 2008, of approximately $92.0 million, $78.0 million and $73.8 million, respectively, were made directly by the State of Maryland on behalf of the component units according to State statute. The contributions have been recognized as a revenue and an expense in the component unit statement of activities. Additionally, some professional employees of the Community College participate in an optional private retirement system. 15. OTHER POST EMPLOYMENT BENEFIT PLAN: Plan Description and Contribution Information Plan Description: The County’s Other Post Employment Benefit Plan (OPEB Plan) is an agent multiple-employer defined benefit postemployment healthcare plan that covers retired employees of the primary government, the Baltimore County Board of Education, the Community College of Baltimore County, the Board of Library Trustees for Baltimore County and the Baltimore County Revenue Authority. The OPEB Plan was established and is maintained by the County as a trust fund as specified in Article 10, Title 14 of the County Code. The trust fund is included in these financial statements as an Other Post Employment Benefits Trust Fund. Separate financial statements are not issued for the OPEB Plan. The OPEB Plan provides healthcare and life insurance benefits to eligible retirees and their beneficiaries who receive retirement benefits either from the Employees’ Retirement System of Baltimore County under Article 5, Title 1 of the County Code or the State Retirement and Pension System of Maryland. Retiree benefits are in accordance with bargaining unit agreements negotiated between each employer’s governing body/board and each employee’s representative labor organization. At June 30, 2009, the date of the latest available valuation, the OPEB Plan covered a projected 31,816 members; 19,993 active plan members and 11,823 retirees receiving benefits.

Statement of Changes in Plan Net AssetsPolice, Fire and Widows' Pension Plan



Employer 13$ Total contributions 13

Investment earnings:Net increase in the fair value of plan assets 3,385 Interest and dividends 2,823 Investment expenses (150)


DEDUCTIONSBenefits 12,594

Total deductions 12,594 Change in net assets (6,523) Net assets at beginning of the year 77,306 Net assets at end of the year 70,783$

59


JUNE 30, 2010

Contributions: Retired plan members and beneficiaries currently receiving benefits are required to contribute specified amounts monthly toward healthcare based on their hire date, years of active service, the medical plan chosen and whether they are Medicare eligible (age 65). The County receives Retiree Drug Subsidy and Prescription Drug Plan reimbursements on Medicare eligible retirees. Each employer is required to contribute its annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. Article 10, Title 14 of the County Code gives the Director of Budget and Finance the authority to determine the annual contribution to the trust fund based on the results of the actuarial valuation of the ARC. The annual OPEB cost was calculated based on the ARC and the net OPEB asset. The following table shows the components of the annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the net OPEB obligation (in thousands):

All Employers The CountyAnnual required contribution (ARC) 138,501$ 65,628$ Interest on net OPEB asset (6,364) (4,157) Adjustment to ARC 5,030 3,285 Annual OPEB cost (expense) 137,167 64,756 Contributions made (110,861) (46,965)Decrease in net OPEB asset 26,306 17,791 Net OPEB asset beginning of year (80,813) (52,786)Net OPEB asset end of year (54,507)$ (34,995)$

The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the fiscal year 2010 and the two preceding fiscal years were as follows (in thousands):

Fiscal Year Ended June 30 Annual OPEB Cost

% of Annual OPEB Cost Contributed Net OPEB Obligation

2008 148,892$ 170.76 (105,351)$ 2009 137,008 82.09 (80,813) 2010 137,167 80.82 (54,507)

60


JUNE 30, 2010

Funded Status and Funding Progress The funded status of the OPEB Plan as of the most recent actuarial valuation date is as follows (dollars in thousands):

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about future employment, mortality and healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employers are subject to continual revision as actuarial results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that will show whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of the valuation and the historical pattern of sharing benefit costs between employers and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of the assets, consistent with the long-term perspective of the calculations. An implicit subsidy amount is factored into the valuation for blended rates charged to retirees who should be contributing at rates much higher than active employees. The June 30, 2009 actuarial valuation used the projected unit credit method under which the benefits of each individual included in an actuarial valuation are allocated by a consistent formula to all valuation years. The method used to determine the actuarial value of assets was fair value. The actuarial assumptions applied were future salary increases of 3% per year and the interest was assumed to have a discount rate of 7.875%. The discount rate is the rate used to determine the present value of the future cash flows. The unfunded actuarial accrued liability is being amortized over a period of 30 years on a closed basis using level percentage of projected payroll. The remaining amortization period at June 30, 2010 was twenty-seven years. The initial medical trend assumption is 9% decreasing gradually to an ultimate rate of 5.2% after 2079. The medical trend assumption was developed using the Society of Actuaries Long-Run Medical Cost Trend Model baseline assumptions. The following assumptions were used as input variables into this model:

Rate of inflation Rate of growth in real income/GDP per Capita Income multiplier for health spending Extra trend due to technology and other factors Year for limiting cost growth to GDP growth

3.2% 1.4%

1.4 1.2% 2075

Schedule of Funding Progress

Actuarial Valuation

Date


Actuarial Accrued

Liability (AAL) Unfunded

AAL (UAAL)Funded Ratio Covered Payroll

UAAL as a % of Covered

PayrollJune 30 (a) (b) (b-a) (a/b) (c) ((b-a)/c)

2009 153,449$ 1,755,670$ 1,602,221$ 8.74% 1,167,722$ 137.21

61


JUNE 30, 2010

The condensed financial statements as of and for the year ended June 30, 2010 are as follows (in thousands):

Statement of Plan Net AssetsOPEB Plan

As of June 30, 2010

ASSETSCash and cash equivalents 3,730$ Investments, at fair value 220,593 Collateral for loaned securities (net of unrealized loss) 11,217 Receivables:

Accrued interest & dividend income 375 Receivable for investments sold 3,139 Receivables other 2,124

Total assets 241,178

LIABILITIESCollateral for loaned securities 11,431 Investments purchased 5,683 Investment expenses payable 258 Other 3,772

Total liabilities 21,144

NET ASSETSNet assets held in trust for benefits 220,034$

Statement of Changes in Plan Net AssetsOPEB Plan



Employer 110,861$ Employee 24,253 On-behalf 7,004 Other 2,549

Total contributions 144,667 Investment earnings:

Net increase in the fair value of plan assets 31,418 Interest and dividends 4,799 Securities lending loss (160) Investment expenses (1,532)


DEDUCTIONSBenefits 112,607

Total deductions 112,607 Change in net assets 66,585 Net assets at beginning of the year 153,449 Net assets at end of the year 220,034$

62


JUNE 30, 2010

16. NEW ACCOUNTING PRONOUNCEMENTS: The County has implemented the following Governmental Accounting Standard Board statements effective July 1, 2009: GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets, which establishes accounting and financial reporting requirements for intangible assets to reduce reporting inconsistencies. GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, which addresses the recognition, measurement and disclosure of information regarding derivative instruments entered into by state and local governments. 17. SUBSEQUENT EVENTS: Refunding On July 27, 2010, the County settled the issuance of $75,285,000 related to the refunding of General Obligation Bonds. The issuance consisted of $61,720,000 Metropolitan District Bonds – 2010 Refunding Series and $13,565,000 Consolidated Public Improvement – 2010 Refunding Series. The net proceeds of the refunding were placed in an irrevocable trust with an escrow agent to provide for all future debt service payments. The 2010 Refunding Series Bonds were used for the purpose of advance refunding $62,320,000 of outstanding Metropolitan District Bonds, and $13,740,000 of outstanding Consolidated Public Improvement Bonds. As a result of the refunding, debt service will be reduced by $12,190,871 and an economic gain of approximately 11.22% will be obtained. The Metropolitan District Bonds are due in the years 2011-2030, inclusive, and the Consolidated Public Improvement Refunding Series Bonds are due in the years 2011-2022, inclusive. Tax-Exempt Bonds On November 9, 2010, the County settled the issuance of $30,100,000 General Obligation Metropolitan District Bonds (73rd Issue – Series A). The bonds are due November 1, in each of the years 2012-2018, inclusive, and bear a true interest cost rate of 4.43%. The County also settled the issuance of $70,050,000 Consolidated Public Improvement Bonds (2010 Series A) on November 9, 2010. The bonds are due November 1, in each of the years 2012-2017, inclusive, and bear a true interest cost rate of 3.81%. Proceeds of the bonds will be used for the purpose of providing funds for the redemption of $100,150,000 Commercial Paper Bond Anticipation Notes. Taxable Bonds Build America Bonds “BABs”: On November 9, 2010, the County settled the issuance of Metropolitan District General Obligation Bonds (73rd Issue – Series B) (Federally Taxable – Issuer Subsidy – Build America Bonds) in the amount of $93,900,000. The bonds are due November 1 in each of the years 2019-2040, inclusive, and bear a true interest cost rate of 2.97%, net of federal subsidy payments. On November 9, 2010, the County settled the issuance of Consolidated Public Improvement General Obligation Bonds (2010 – Series C) (Federally Taxable – Issuer Subsidy – Build America Bonds) in the amount of $177,000,000 The bonds are due November 1 in each of the years 2018-2030, inclusive, and bear a true interest cost rate of 2.58%, net of federal subsidy payments.

Qualified School Construction Bonds (QSCBs): On November 9, 2010 the County settled the issuance of $19,950,000 Consolidated Public Improvement Bonds (2010 Series – B) (Federally Taxable – Issuer Subsidy –Qualified School Construction Bonds). The bonds are due on November 1, 2029, and bear a true interest cost rate of 0.05%, net of federal subsidy payments. The above is all the events that have occurred subsequent to the financial statement date and through the date of this report.

63

64

Required Supplementary Information

65

BALTIMORE COUNTY, MARYLAND REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30, 2010

Employees’ Retirement System Six-year historical trend information about the System is presented herewith as required supplementary information. This information is intended to help users assess the System’s funding status on a going-concern basis, assess progress made in accumulating assets to pay benefits when due and make comparisons with other public employee retirement systems. The information presented in the schedules was determined as part of the actuarial valuation at the dates indicated. Schedule of Funding Progress (dollars in thousands)

Actuarial Valuation

Date June 30


(a)

Actuarial Accrued

Liability (AAL) (b)

Unfunded (Excess of)

AAL (UAAL)

(b-a)

Funded Ratio (a/b)

Covered Payroll

(c)

UAAL

(Excess of) as a % of Covered Payroll ((b-a)/c)

2004(1) $1,803,811 $1,924,543 $120,732 93.7% $370,639 32.6% 2005(2) 1,832,922 1,949,611 116,689 94.0 388,052 30.1 2006 1,938,817 2,078,812 139,995 93.3 425,400 32.9 2007(3) 2,101,023 2,289,452 188,429 91.8 439,913 42.8 2008(4) 2,191,623 2,491,342 299,719 88.0 479,654 62.5 2009(5) 2,143,616 2,599,670 456,054 82.5 506,908 90.0

(1) Asset method change: difference between expected and actual return on market value smoothed over 4 years. (2) Cost method change: from Entry Age Normal to Projected Unit Credit. (3) Assumption changes recommended in 2006 experience study were adopted, plus plan changes to all groups

including implementation of DROP programs for general employees, correctional officers and deputy sheriffs. (4) Amortization period was changed to 30 years. The amendments of GASB Statement No. 50 were recognized, but

they had no impact on the information disclosed. (5) Actuarial Asset Method is revised to remove 14% Corridor Around Market Value and the Smoothing period was

changed from 4 to 5 years. Salary increase rates for all members are reduced.

Schedule of Employers’ Contributions (dollars in thousands)

Fiscal Year

Ended June 30

Annual Required

Contribution2005 29,968$ 100%2006 34,433 1002007 40,065 1002008 44,167 1002009 49,763 1002010 57,976 100

Percentage Contributed

66

BALTIMORE COUNTY, MARYLAND REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30, 2010

OPEB Plan: Three year historical trend information about the OPEB Plan will be presented herewith as required supplementary information. This information is intended to help users assess the OPEB Plan’s funding status on a going concern basis, assess progress made in accumulating assets to pay benefits when due and make comparisons with other public employee retirement systems’ OPEB Plans.

(dollars in thousands)

Actuarial Valuation

Date


Actuarial Accrued

Liability (AAL) Unfunded

AAL (UAAL)Funded Ratio Covered Payroll

UAAL as a % of Covered

PayrollJune 30 (a) (b) (b-a) (a/b) (c) ((b-a)/c)

2007 -$ 1,765,553$ 1,765,553$ 0% 1,053,146$ 167.65%2008 170,478 1,752,891 1,582,413 9.73 1,165,779 135.74 2009 153,449 1,755,670 1,602,221 8.74 1,167,722 137.21

Schedule of Employers’ Contributions (dollars in thousands)

Fiscal Year Ended

June 30

Annual Required

Contribution2008 148,892$ 2009 138,858 81.002010 138,501 80.04

Percentage Contributed170.76%

67

68

Supplementary Information Schedules & Combining Financial Statements

The schedules provide selected budgetary information concerning the General Fund and the Liquor License Fund. The combining financial statements provide detailed information concerning financial position and results of operations for the nonmajor governmental funds, internal service funds and fiduciary funds.

69

Baltimore CountySchedule of Appropriations and Expenditures - Budgetary Basis


Actual Variance with Amounts - Final Budget -

Budgeted Amounts Budgetary Positive Original Final Basis (Negative)

General Government:Legislative:

County Council 1,856$ 1,856$ 1,725$ 131$ Judicial:

Circuit Court:Criminal and civil adjudication 5,130 5,130 5,121 9

Orphans Court:Adjudication of estates 210 210 198 12

States Attorney:Criminal prosecution 8,214 8,214 8,095 119

County Sheriff:Conveying prisoners and serving summonses 5,422 5,422 5,234 188

Total 18,976 18,976 18,648 328 Executive:

Office of the County Executive 1,160 1,160 1,060 100 County Administrative Officer:

General administration 1,280 1,280 1,201 79 Human relations commission 384 384 266 118 Fair practices 419 419 356 63 Baltimore metropolitan council 131 131 131 -

Total 3,374 3,374 3,014 360 Elections:

Board of Supervisors of Elections 2,987 2,987 2,164 823 Financial Administration:

Office of Budget and Finance:Budget formulation and administration 1,987 1,937 1,935 2 Financial operations 4,729 4,729 4,690 39 Pay systems 289 278 264 14 Investment and debt management 361 361 351 10 Insurance administration 1,850 1,907 1,906 1 Purchasing and disbursements 1,414 1,419 1,418 1

Total 10,630 10,631 10,564 67 County Auditor 1,537 1,537 1,525 12 Office of Law:

General legal services 2,145 2,145 1,859 286 Legislative relations 388 388 256 132

Total 2,533 2,533 2,115 418 Other:

Vehicle Operations and Maintenance 1,295 1,351 1,350 1 Office of Planning and Community Conservation

General administration 2,375 2,375 2,249 126 Zoning commissioner 349 349 340 9 People's counsel 190 190 181 9 Community conservation 512 512 475 37

Office of Human Resources:Personnel administration 2,419 2,419 2,314 105

(continued)70





Department of Permits and Development Management:General administration 1,560 1,560 1,557 3 Electrical licensing and regulation 17 17 17 - Plumbing licensing and regulation 28 28 28 - Development processing 2,274 2,274 2,257 17 Code inspections and enforcement 5,020 5,020 5,003 17 Permits and licenses 912 912 823 89

Board of Appeals 254 254 241 13 Cooperative Extension Service 309 309 300 9 Office of Information Technology:

General administration 2,521 2,668 2,666 2 Applications development 11,132 10,837 10,833 4 Computer and technical services 2,266 2,456 2,451 5 Telecommunications Services 2,229 2,187 2,186 1

Total 35,662 35,718 35,271 447 General Government Total 77,555 77,612 75,026 2,586

Public Safety:Police Department:

General administration 3,665 3,770 3,762 8 Administrative & technical services 24,416 23,741 23,664 77 Criminal/forensic investigations 21,910 21,160 21,152 8 Vice/intelligence/narcotics 9,150 8,690 8,659 31 Patrol/precincts 112,047 114,487 114,406 81 Support operations 12,591 12,231 12,230 1 Human resources 5,769 5,469 5,343 126 School safety 1,343 1,343 1,337 6

Total 190,891 190,891 190,553 338 Bureau of Corrections:

Custodial care of prisoners 33,843 33,843 33,841 2 Fire Department:

General administration 939 939 914 25 Investigative services 3,337 3,345 3,338 7 Alarm and communication system 1,035 1,035 1,015 20 Field operations 77,178 77,110 76,288 822 Office of emergency preparedness 257 282 277 5 Field operation administration 1,815 1,850 1,836 14 Fire/rescue academy 1,494 1,494 1,434 60 Contributions - volunteer fire companies 6,686 6,686 6,664 22

Total 92,741 92,741 91,766 975 Communications:

Central communications center 11,279 11,279 11,272 7 Public Safety Total 328,754 328,754 327,432 1,322

(continued)71





Public Works:Office of Director of Public Works:

General administration 748 773 732 41 Metro Financing/Petition Proc 25 25 20 5

Total 773 798 752 46 Bureau of Engineering and Construction:

General administration 466 471 447 24 Structural design 2,009 2,019 2,005 14 Public buildings design 552 557 546 11 General surveying 383 396 391 5 Contracts and construction inspection 2,143 2,158 2,133 25

Total 5,553 5,601 5,522 79 Bureau of Highways:

General administration 1,197 1,212 1,179 33 General operations and maintenance 13,941 14,391 14,167 224 Storm emergencies 6,027 21,027 20,869 158

Total 21,165 36,630 36,215 415 Bureau of Solid Waste Management:

General administration 482 487 484 3 Refuse collection 27,952 27,987 27,933 54 Refuse disposal 21,701 20,996 19,755 1,241 Recycling 3,437 3,210 2,498 712

Total 53,572 52,680 50,670 2,010 Bureau of Traffic Engineering and Transportation Planning:

Traffic planning 9,466 9,466 9,462 4 Traffic sign installation and maintenance 1,911 2,016 1,781 235 Traffic signal operation and maintenance 1,168 1,168 1,099 69

Total 12,545 12,650 12,342 308 Bureau of Utilities:

Sewer and water maintenance 574 574 567 7 Bureau of Building and Equipment Services:

Building maintenance 6,984 7,219 7,216 3 Building operation and management 18,024 17,693 16,818 875 Equipment maintenance 6,025 6,370 6,287 83

Total 31,033 31,282 30,321 961 Public Works Total 125,215 140,215 136,389 3,826

(continued)72





Health and Human Services:Health:

Department of Health:General administration 2,901 2,973 2,952 21 Nursing services 3,231 3,221 3,200 21 Acute communicable disease control 1,519 1,549 1,536 13 Medical environmental health 643 651 644 7 Medical social work service 615 590 580 10 Animal control 1,681 1,811 1,792 19 School health services 1,799 1,741 1,726 15 Developmental disabilities 603 568 563 5 Home health services 1,705 1,615 1,587 28 Long-term care services 1,744 1,769 1,741 28 Medical assistance and hospital support 990 920 903 17 Dental health services 616 644 633 11 Speech, language and hearing 351 346 342 4

Total 18,398 18,398 18,199 199 Department of Environmental Protection and Resource Management 7,749 7,749 7,735 14

Human Services:Department of Social Services:

Adult foster care assistance 150 150 150 - Welfare to work program 425 425 425 - Foster care for children 16 16 6 10 Emergency funds/housing for the homeless 600 600 458 142 Battered spouse program 130 130 130 - Day resource center 231 231 221 10 In-home care program 231 231 223 8 Volunteer program 77 77 73 4 Adult services 756 756 733 23 General administration 1,400 1,400 1,320 80 STEPS program 249 250 250 - Children's services 386 386 378 8 Income maintenance 888 837 787 50 Family services 1,145 1,195 1,181 14

Total 6,684 6,684 6,335 349 Aging Programs & Services:

Department of Aging:General administration 808 738 685 53 Adult medical day care 100 100 100 - Senior centers network 2,004 1,990 1,986 4 Special geriatric services 286 322 319 3 Facilities 996 992 990 2 Transportation 1,187 1,267 1,259 8 Program and volunteer services 414 386 385 1

Total 5,795 5,795 5,724 71 Health and Human Services Total 38,626 38,626 37,993 633

(continued)73





Culture and Leisure Services:Department of Recreation and Parks:

General administration 1,416 1,416 1,400 16 Community & neighborhood recreation, organization, direction and development 4,702 4,771 4,752 19 Activity leadership 3,034 2,965 2,824 141 Operation and maintenance of facilities 6,308 6,308 6,247 61 Revenue producing facilities 745 745 679 66 Nature and environmental center 790 790 741 49

Organization Contributions:Organization contributions 4,391 4,391 4,300 91 General grant program 3,874 3,874 3,738 136

Culture and Leisure Services Total 25,260 25,260 24,681 579

Economic and Community Development:Economic Development Commission 2,177 2,177 2,104 73 Economic and Community Development Total 2,177 2,177 2,104 73

Pension Plan Contributions:Employees' retirement contributions 65,996 65,996 52,996 13,000 Non-system retirement 187 187 179 8 Pension Plan Contributions Total 66,183 66,183 53,175 13,008

Healthcare Contributions:Employee health & life insurance 107,967 92,910 67,607 25,303 Healthcare Contributions Total 107,967 92,910 67,607 25,303

Miscellaneous:Social Security 17,233 17,393 17,375 18 Reserve for Contingencies 1,000 988 - 988 Miscellaneous Total 18,233 18,381 17,375 1,006

Payments to Component Units:Community College 38,460 38,532 38,532 - Board of Education 698,257 697,967 697,669 298 Library 34,285 34,285 34,285 - Payments to Component Units Total 771,002 770,784 770,486 298

(continued)74





Debt Service:Principal retirement:

General obligation bonds:Community College 2,705 2,705 2,705 - General public facilities 28,327 28,327 28,327 - Pension funding bonds 7,255 7,255 7,255 -

Non-general obligation debt 7,743 7,743 7,743 - Total 46,030 46,030 46,030 -

Interest:General obligation bonds:

Community College 1,599 1,889 1,886 3 General public facilities 18,568 18,408 16,706 1,702 Pension funding bonds 1,915 1,915 1,915 -

Non-general obligation debt 3,707 3,707 3,706 1 Total 25,789 25,919 24,213 1,706

Fiscal charges:General obligation bonds:

General public facilities 536 536 536 - Non-general obligation debt 10 10 5 5

Total 546 546 541 5 Debt Service Total 72,365 72,495 70,784 1,711

Operating Transfers Out:Contribution to capital budget 27,584 27,584 27,584 - Contribution to capital budget - schools 5,539 5,539 5,539 - Gifts and Grants 7,415 7,427 7,427 - Operating Transfers Out Total 40,538 40,550 40,550 -

General Fund Total 1,673,875$ 1,673,947$ 1,623,602$ 50,345$

75

Economic Development

Liquor RevolvingLicense Financing Total

ASSETSCash and investments 484$ 6,376$ 6,860$ Loans receivable - 11,934 11,934 Total assets 484$ 18,310$ 18,794$

LIABILITIES AND FUND BALANCESLiabilities Accounts payable 24$ 15$ 39$ Deferred revenue - 11,934 11,934 Total liabilities 24 11,949 11,973

Fund balances Reserved for:

Encumbrances - 2,107 2,107 Loan guarantees - 895 895

Unreserved: Designated for subsequent years' expenditures 154 - 154 Undesignated 306 3,359 3,665 Total fund balances 460 6,361 6,821 Total liabilities and fund balances 484$ 18,310$ 18,794$

Special Revenue Funds

Baltimore County, MarylandCombining Balance Sheet

Nonmajor Governmental FundsJune 30, 2010

(In Thousands)

76

Liquor License

Economic Development

Revolving Financing Total

REVENUESLicenses and permits 639$ -$ 639$ Repayment of loans - 1,908 1,908 Charges for services 65 278 343 Interest revenue - 249 249

Total revenues 704 2,435 3,139

EXPENDITURESGeneral government 650 - 650 Economic development - 141 141 Loans - 1,163 1,163

Total expenditures 650 1,304 1,954 Excess of revenues over expenditures 54 1,131 1,185

OTHER FINANCING SOURCES Transfers out - (18,072) (18,072)

Total other financing sources - (18,072) (18,072) Net change in fund balances 54 (16,941) (16,887)

Fund balances at beginning of the year 406 23,302 23,708 Fund balances at end of the year 460$ 6,361$ 6,821$

Special Revenue Funds

Baltimore County, MarylandCombining Statement of Revenues, Expenditures, and Changes in Fund Balances

Nonmajor Governmental FundsFor the Year Ended June 30, 2010

(In Thousands)

77

VariancePositive

Budget Actual (Negative)Revenues:Licenses and permits 730$ 704$ (26)$

Total revenues 730 704 (26) Expenditures:General government:

License sale and control 751 650 101 Total expenditures 751 650 101 Excess (deficiency) of revenues over expenditures (21)$ 54 75$

Fund balance at beginning of year 406 Fund balance at end of year 460$

Baltimore County, MarylandSchedule of Revenues, Expenditures,


and Changes in Fund Balance - Budget and ActualLiquor License Fund

78

VehicleOperations Central

and Printing Self-InsuranceMaintenance Service Program Total

ASSETSCurrent assets:

Cash and investments -$ 745$ 72,937$ 73,682$ Receivables, net 2 - 3,638 3,640 Due from other funds - - 11,456 11,456 Inventories 536 - - 536 Prepaid costs - - 9,058 9,058

Total current assets 538 745 97,089 98,372 Capital assets:

Depreciable (net of accumulated depreciation) 19,064 203 - 19,267 Total assets 19,602 948 97,089 117,639

LIABILITIESCurrent liabilities:

Accounts payable 552 83 5,257 5,892 Accrued payroll 126 23 - 149 Compensated absences 222 17 - 239 Due to other funds 11,456 - - 11,456 Claims and judgments - - 36,140 36,140

Total current liabilities 12,356 123 41,397 53,876 Noncurrent liabilities: Claims and judgments - - 25,180 25,180

Total liabilities 12,356 123 66,577 79,056

NET ASSETSInvested in capital assets 19,064 203 - 19,267 Unrestricted (deficit) (11,818) 622 30,512 19,316

Total net assets 7,246$ 825$ 30,512$ 38,583$

(In Thousands)

Baltimore County, MarylandCombining Statement of Net Assets

Internal Service FundsJune 30, 2010

79



OPERATING REVENUESCharges for services-internal 17,826$ 961$ 64,329$ 83,116$ Charges for services-other 2,820 27 124,836 127,683 Miscellaneous 265 - - 265

Total operating revenues 20,911 988 189,165 211,064

OPERATING EXPENSESPersonal services 2,548 453 - 3,001 Contractual services 612 95 - 707 Rents and utilities 356 202 - 558 Supplies and maintenance 10,236 178 - 10,414 Insurance claims and expenses - - 215,996 215,996 Depreciation 4,318 25 - 4,343 Other expenses 749 34 - 783

Total operating expenses 18,819 987 215,996 235,802 Operating income (loss) 2,092 1 (26,831) (24,738)

NONOPERATING REVENUESInterest on investments - - 478 478

Total nonoperating revenues - - 478 478 Income (loss) before transfers 2,092 1 (26,353) (24,260)

Transfers in 346 - - 346 Transfers out - - (344) (344)

Change in net assets 2,438 1 (26,697) (24,258) Net assets at beginning of the year 4,808 824 57,209 62,841 Net assets at end of the year 7,246$ 825$ 30,512$ 38,583$

(In Thousands)

Baltimore County, Maryland Combining Statement of Revenues, Expenses,

Internal Service FundsFor the Year Ended June 30, 2010

and Changes in Fund Net Assets

80



CASH FLOWS FROM OPERATING ACTIVITIESReceipts from customers 20,658$ 988$ 188,605$ 210,251$ Payments to suppliers (11,109) (410) - (11,519) Payments to employees (2,484) (444) - (2,928) Payment for interfund services used (749) (34) - (783) Claims paid - - (213,704) (213,704) Other receipts 217 - - 217

Net cash provided (used) by operating activities 6,533 100 (25,099) (18,466)

CASH FLOWS FROM NONCAPITALFINANCING ACTIVITIES

Transfers in 346 - - 346 Transfers out - - (344) (344) Repayment from other funds - - 1,941 1,941 Repayment to other funds (1,941) - - (1,941)

Net cash provided (used) by noncapital activities (1,595) - 1,597 2

CASH FLOWS FROM CAPITAL AND RELATEDFINANCING ACTIVITIES

Purchases of capital assets (5,573) (43) - (5,616) Sales of capital assets 635 - - 635

Net cash used by capital and related financing activities (4,938) (43) - (4,981)

CASH FLOWS FROM INVESTING ACTIVITIESInterest on investments - - 478 478

Net cash provided by investing activities - - 478 478 Net increase (decrease) in cash and cash equivalents - 57 (23,024) (22,967)

Cash and cash equivalents at beginning of the year - 688 95,961 96,649 Cash and cash equivalents at end of the year -$ 745$ 72,937$ 73,682$

RECONCILIATION OF OPERATING INCOME (LOSS) TO NETCASH PROVIDED BY OPERATING ACTIVITIES

Operating income (loss) 2,092$ 1$ (26,831)$ (24,738)$ Adjustments to reconcile operating income to net

cash provided by operating activities:Depreciation expense 4,318 25 - 4,343

Effect of changes in operating assets and liabilities:Receivables, net 12 - (560) (548) Prepaid costs - - (1,610) (1,610) Inventories (48) - - (48) Accounts and other payables 95 65 (658) (498) Accrued expenses 64 9 - 73 Claims and judgements - - 4,560 4,560

Net cash provided (used) by operating activities 6,533$ 100$ (25,099)$ (18,466)$

(In Thousands)For the Year Ended June 30, 2010

Baltimore County, MarylandCombining Statement of Cash Flows

Internal Service Funds

81

Employees' Retirement

System

Police, Fire, and Widows' Pension Plan OPEB Plan Total

ASSETSCash and cash equivalents 41,850$ 6,966$ 3,730$ 52,546$ Collateral for loaned securities 89,734 - 11,217 100,951 Receivables:

Accrued interest & dividend income 3,002 653 375 4,030 Receivable for investments sold 25,113 988 3,139 29,240 Receivables other 1,224 - 2,124 3,348

Total receivables 29,339 1,641 5,638 36,618 Investments, at fair value:

U.S. Government and Agency securities 165,542 - 20,693 186,235 Municipal bonds 1,255 37,009 157 38,421 Foreign bonds 28,473 5,621 3,559 37,653 Corporate bonds 127,548 - 15,944 143,492 Stocks 361,304 - 45,164 406,468 Bond mutual funds 177,205 8,162 22,151 207,518 Stock mutual funds 342,894 11,430 42,862 397,186 Real estate equity funds 62,671 - 7,834 70,505 Hedge funds 94,550 - 11,819 106,369 Private equity funds 85,406 - 10,676 96,082 Real assets 32,688 - 4,086 36,774 Global Asset Allocation 285,175 - 35,648 320,823

Total investments 1,764,711 62,222 220,593 2,047,526 Total assets 1,925,634 70,829 241,178 2,237,641

LIABILITIESSecurities lending payable 91,449 - 11,431 102,880 Investments purchased 45,464 23 5,683 51,170 Investment expenses payable 2,061 23 258 2,342 Refunds payable 251 - - 251 Other 138 - 3,772 3,910

Total liabilities 139,363 46 21,144 160,553

NET ASSETSNet assets held in trust for benefits 1,786,271$ 70,783$ 220,034$ 2,077,088$

(In Thousands)

Baltimore County, MarylandCombining Statement of Fiduciary Net Assets

Benefits Trust FundsJune 30, 2010

82

Employees' Retirement

System

Police, Fire, and Widows' Pension Plan OPEB Plan Total


Employer 57,976$ 13$ 110,861$ 168,850$ Employees 33,236 - 24,253 57,489 Intergovernmental - - 9,553 9,553

Total contributions 91,212 13 144,667 235,892

Investment earnings:Net increase in the fair value of plan assets 232,230 3,385 31,418 267,033 Interest and dividends 35,258 2,823 4,799 42,880 Investment expenses (11,380) (150) (1,532) (13,062)

Net investment gain 256,108 6,058 34,685 296,851 Net income from securities lending:

Securities lending income 485 - 65 550 Less:Net decrease in fair value of investments (1,715) - (214) (1,929) Borrower rebates 87 - 11 98 Agent fees (160) - (22) (182)

Net (loss) from securities lending (1,303) - (160) (1,463) Total net investment gain 254,805 6,058 34,525 295,388

Total additions 346,017 6,071 179,192 531,280

DEDUCTIONSBenefits 150,704 12,594 112,607 275,905 Refunds 2,235 - - 2,235 Administrative expense 1,099 - - 1,099

Total deductions 154,038 12,594 112,607 279,239 Change in net assets 191,979 (6,523) 66,585 252,041 Net assets at beginning of the year 1,594,292 77,306 153,449 1,825,047 Net assets at end of the year 1,786,271$ 70,783$ 220,034$ 2,077,088$

(In Thousands)

Baltimore County, MarylandCombining Statement of Changes in Fiduciary Net Assets

Benefits Trust FundsFor the Year Ended June 30, 2010

83

84

STATISTICAL

SECTION

The Statistical Section presents data to assist users of this report to assess the economic condition of the County. They are intended to provide a broader and more complete understanding of the County and its financial affairs than is possible from the basic financial statements and supporting schedules included in the “Financial Section.” Many of these schedules cover more than two fiscal years and present data from sources other than the accounting records. Therefore, the data contained in the Statistical Section has not been subjected to independent audit. The five categories of information are as follows: Financial Trends

These schedules contain trend information to help the reader understand how the County’s financial performance and well-being have changed over time.

Revenue Capacity These schedules contain information to help the reader assess the County’s most significant local revenue source, the property tax.

Debt Capacity These schedules present information to help the reader assess the affordability of the County’s current levels of outstanding debt and the County’s ability to issue additional debt in the future.

Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the County’s activities take place.

Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the County’s financial report relates to the services the County provides and the activities it performs.

Bal

timor

e C

ount

y, M

aryl

and

Net

Ass

ets

by C

ompo

nent

Last

Nin

e Fi

scal

Yea

rs(a

ccru

al b

asis

of a

ccou

ntin

g)(d

olla

rs e

xpre

ssed

in th

ousa

nds)

Fisc

al Y

ear

2002

2003

2004

2005

2006

2007

2008

2009

2010

Gov

ernm

enta

l act

iviti

esIn

vest

ed in

cap

ital a

sset

s, n

et o

f rel

ated

deb

t a30

2,30

5$

26

2,89

7$

1,

303,

115

$

1,38

5,79

1$

1,

465,

260

$

1,

492,

767

$

1,

523,

265

$

1,

595,

901

$

1,

593,

450

$

R

estri

cted

8,04

6

9,48

8

8,85

3

12

,135

17,8

07

15,3

24

122,

079

73,3

57

57,7

13

Unr

estri

cted

(def

icit)

(78,

985)

(51,

982)

(72,

658)

(4

3,93

5)

46

,525

10

3,05

3

20

,351

(6

7,68

3)

(3

09,3

80)

Tota

l gov

ernm

enta

l act

iviti

es n

et a

sset

s23

1,36

6$

22

0,40

3$

1,

239,

310

$

1,35

3,99

1$

1,

529,

592

$

1,

611,

144

$

1,

665,

695

$

1,

601,

575

$

1,

341,

783

$

Bus

ines

s-ty

pe a

ctiv

ities

Inve

sted

in c

apita

l ass

ets,

net

of r

elat

ed d

ebt

424,

562

$

419,

453

$

440,

818

$

48

2,78

4$

524,

996

$

543,

107

$

489,

563

$

568,

225

$

568,

687

$

Unr

estri

cted

(def

icit)

65,4

86

64

,392

37,5

29

(1

2,17

6)

(6

8,78

0)

(1

07,9

52)

(63,

032)

(137

,808

)

(1

59,7

88)

Tota

l bus

ines

s-ty

pe a

ctiv

ities

net

ass

ets

490,

048

$

483,

845

$

478,

347

$

47

0,60

8$

456,

216

$

435,

155

$

426,

531

$

430,

417

$

408,

899

$

Prim

ary

gove

rnm

ent

Inve

sted

in c

apita

l ass

ets,

net

of r

elat

ed d

ebt

726,

867

$

682,

350

$

1,74

3,93

3$

1,

868,

575

$

1,99

0,25

6$

2,03

5,87

4$

2,01

2,82

8$

2,16

4,12

6$

2,16

2,13

7$

Res

trict

ed8,

046

9,

488

8,

853

12,1

35

17

,807

15

,324

12

2,07

9

73

,357

57

,713

U

nres

trict

ed (d

efic

it)(1

3,49

9)

12

,410

(35,

129)

(5

6,11

1)

(2

2,25

5)

(4

,899

)

(42,

681)

(205

,491

)

(4

69,1

68)

Tota

l prim

ary

gove

rnm

ent n

et a

sset

s72

1,41

4$

70

4,24

8$

1,

717,

657

$

1,82

4,59

9$

1,

985,

808

$

2,

046,

299

$

2,

092,

226

$

2,

031,

992

$

1,

750,

682

$

Not

es:

Acc

rual

bas

is fi

nanc

ial i

nfor

mat

ion

for t

he C

ount

y as

a w

hole

is a

vaila

ble

back

to 2

002

only

, the

yea

r GA

SB

Sta

tem

ent 3

4 w

as im

plem

ente

d.a F

isca

l yea

r 200

4 re

flect

s an

acc

ount

ing

chan

ge o

f $94

9 m

illio

n fo

r ret

roac

tive

repo

rting

of c

osts

incu

rred

prio

r to

July

1, 2

001

asso

ciat

ed w

ith th

e C

ount

y's

gove

rnm

enta

l ac

tiviti

es in

frast

ruct

ure

asse

ts.

85

Bal

timor

e C

ount

y, M

aryl

and

Cha

nges

in N

et A

sset

sLa

st N

ine

Fisc

al Y

ears

(acc

rual

bas

is o

f acc

ount

ing)

(dol

lars

exp

ress

ed in

thou

sand

s)

Fisc

al Y

ear

2002

2003

2004

2005

2006

2007

2008

2009

2010

Expe

nses

Gov

ernm

enta

l act

iviti

es:

Gen

eral

gov

ernm

ent

266,

118

$

302,

731

$

322,

644

$

34

4,95

9$

370,

820

$

36

4,79

6$

427,

611

$

45

7,69

6$

390,

428

$

P

ublic

saf

ety

223,

713

232,

827

231,

618

24

6,93

7

268,

561

28

4,72

9

321,

024

33

6,32

5

339,

301

P

ublic

wor

ks90

,018

95

,535

11

6,54

8

154,

490

15

4,88

3

187,

130

16

6,23

4

163,

493

19

8,07

5

Hea

lth a

nd h

uman

ser

vice

s96

,935

10

4,75

5

10

9,40

5

117,

270

11

2,42

7

124,

274

13

4,69

3

141,

023

14

4,61

4

Cul

ture

and

leis

ure

serv

ices

42,5

14

42,7

30

42,4

49

47

,476

52,7

46

56,8

89

62

,080

66,8

56

68

,818

Eco

nom

ic a

nd c

omm

unity

dev

elop

men

t12

,674

13

,660

14

,340

10,5

62

9,

473

7,71

3

8,

762

10,5

78

13

,743

Edu

catio

n72

7,64

9

67

2,21

4

64

2,79

4

666,

277

69

1,90

6

786,

468

78

1,58

8

774,

053

83

1,55

0

Inte

rest

on

long

-term

deb

t17

,214

22

,937

22

,004

23,8

95

20

,568

21

,940

22,9

00

20

,305

22,0

57

To

tal g

over

nmen

tal a

ctiv

ities

exp

ense

s1,

476,

835

1,

487,

389

1,

501,

802

1,61

1,86

6

1,

681,

384

1,83

3,93

9

1,

924,

892

1,97

0,32

9

2,

008,

586

Bus

ines

s-ty

pe a

ctiv

ities

:W

ater

and

sew

er s

ervi

ces

151,

227

158,

398

175,

148

17

3,80

3

215,

217

22

2,60

6

229,

829

22

3,53

4

240,

626

R

ecre

atio

nal f

acili

ties

868

817

868

929

4

-

-

-

-

Tota

l bus

ines

s-ty

pe a

ctiv

ities

exp

ense

s15

2,09

5

15

9,21

5

17

6,01

6

174,

732

21

5,22

1

222,

606

22

9,82

9

223,

534

24

0,62

6

Tota

l prim

ary

gove

rnm

ent e

xpen

ses

1,62

8,93

0$

1,64

6,60

4$

1,67

7,81

8$

1,

786,

598

$

1,89

6,60

5$

2,

056,

545

$

2,15

4,72

1$

2,

193,

863

$

2,24

9,21

2$

Pr

ogra

m R

even

ues

Gov

ernm

enta

l act

iviti

es:

Cha

rges

for s

ervi

ces:

Gen

eral

gov

ernm

ent

134,

447

$

167,

239

$

180,

553

$

20

0,59

0$

218,

711

$

20

1,11

3$

188,

526

$

18

7,86

8$

145,

403

$

P

ublic

saf

ety

5,19

4

3,42

6

3,05

7

2,88

7

2,78

3

3,

294

2,02

2

1,

935

2,29

4

P

ublic

wor

ks3,

439

1,

873

2,

701

2,

153

2,

420

2,27

3

1,

837

1,66

9

2,

616

Hea

lth a

nd h

uman

ser

vice

s4,

052

4,

146

3,

237

4,

522

4,

527

4,15

5

3,

916

3,91

6

3,

801

Cul

ture

and

leis

ure

serv

ices

416

425

489

523

2,16

4

2,

578

2,65

3

2,

856

3,24

7

E

cono

mic

and

com

mun

ity d

evel

opm

ent

1,13

5

491

454

503

505

60

1

939

57

1

713

O

pera

ting

gran

ts a

nd c

ontri

butio

ns:

Gen

eral

gov

ernm

ent

1,23

7

1,53

3

1,74

4

2,37

9

2,97

9

9,

172

2,58

7

3,

093

2,89

4

P

ublic

saf

ety

18,9

12

20,8

12

18,6

85

23

,881

24,9

30

19,4

99

19

,627

20,6

38

18

,115

Pub

lic w

orks

38,0

31

34,5

42

27,6

10

34

,168

41,7

90

43,2

57

41

,584

36,3

42

2,

128

Hea

lth a

nd h

uman

ser

vice

s72

,945

82

,427

85

,294

91,4

76

86

,606

92

,341

101,

797

10

9,35

7

100,

877

C

ultu

re a

nd le

isur

e se

rvic

es1,

108

1,

330

1,

151

1,

138

1,

276

1,74

5

1,

502

1,51

9

1,

261

Eco

nom

ic a

nd c

omm

unity

dev

elop

men

t10

,864

12

,244

12

,937

9,15

4

7,26

8

7,

075

6,56

9

8,

249

17,9

38

In

tere

st o

n lo

ng-te

rm d

ebt

-

-

-

-

-

-

-

-

1,

137

Cap

ital g

rant

s an

d co

ntrib

utio

ns50

,624

38

,094

38

,398

42,5

52

37

,550

42

,348

53,2

87

54

,852

31,2

63

To

tal g

over

nmen

tal a

ctiv

ities

pro

gram

reve

nues

342,

404

368,

582

376,

310

41

5,92

6

433,

509

42

9,45

1

426,

846

43

2,86

5

333,

687

B

usin

ess-

type

act

iviti

es:

Cha

rges

for s

ervi

ces:

Wat

er a

nd s

ewer

ser

vice

s13

4,42

2

13

2,09

7

14

8,65

6

144,

419

16

5,60

6

168,

715

18

9,24

6

200,

741

20

6,03

1

Rec

reat

iona

l fac

ilitie

s67

0

60

7

62

8

64

7

-

-

-

-

-

Ope

ratin

g gr

ants

and

con

tribu

tions

:-

-

-

-

-

-

-

-

829

C

apita

l gra

nts

and

cont

ribut

ions

23,0

45

19,2

99

20,6

73

21

,014

34,0

86

32,6

93

30

,850

25,5

85

12

,071

Tota

l bus

ines

s-ty

pe a

ctiv

ities

pro

gram

reve

nues

158,

137

152,

003

169,

957

16

6,08

0

199,

692

20

1,40

8

220,

096

22

6,32

6

218,

931

To

tal p

rimar

y go

vern

men

t pro

gram

reve

nues

500,

541

$

520,

585

$

546,

267

$

58

2,00

6$

633,

201

$

63

0,85

9$

646,

942

$

65

9,19

1$

552,

618

$

(con

tinue

d)

86

Bal

timor

e C

ount

y, M

aryl

and

Cha

nges

in N

et A

sset

sLa

st N

ine

Fisc

al Y

ears

(acc

rual

bas

is o

f acc

ount

ing)

(dol

lars

exp

ress

ed in

thou

sand

s)

Fisc

al Y

ear

2002

2003

2004

2005

2006

2007

2008

2009

2010

Net

(Exp

ense

)/Rev

enue

Gov

ernm

enta

l act

iviti

es(1

,134

,431

)$

(1

,118

,807

)$

(1

,125

,492

)$

(1

,195

,940

)$

(1

,247

,875

)$

(1,4

04,4

88)

$

(1,4

98,0

46)

$ (1

,537

,464

)$

(1,6

74,8

99)

$ B

usin

ess-

type

act

iviti

es6,

042

(7

,212

)

(6,0

59)

(8,6

52)

(15,

529)

(2

1,19

8)

(9,7

33)

2,79

2

(2

1,69

5)

Tota

l prim

ary

gove

rnm

ent n

et e

xpen

se(1

,128

,389

)$

(1

,126

,019

)$

(1

,131

,551

)$

(1

,204

,592

)$

(1

,263

,404

)$

(1,4

25,6

86)

$

(1,5

07,7

79)

$ (1

,534

,672

)$

(1,6

96,5

94)

$

Gen

eral

Rev

enue

s an

d O

ther

Cha

nges

in

Net

Ass

ets

Gov

ernm

enta

l act

iviti

es:

Taxe

s:P

rope

rty ta

xes

528,

560

$

545,

202

$

564,

407

$

58

8,77

3$

626,

149

$

66

2,30

7$

712,

863

$

76

7,10

3$

813,

970

$

In

com

e ta

xes

434,

201

420,

710

473,

017

53

1,09

0

572,

136

58

9,99

4

661,

125

56

9,73

6

473,

792

P

ublic

ser

vice

taxe

s11

7,91

7

12

8,45

0

14

7,99

7

173,

530

19

9,59

1

180,

736

15

5,69

9

123,

863

11

6,59

2

Gra

nts

and

cont

ribut

ions

not

rest

ricte

d to

sp

ecifi

c pr

ogra

ms:

Sta

te o

f Mar

ylan

d9,

194

8,

394

6,

932

8,

622

8,

553

9,16

5

8,

847

6,95

4

9,

655

Unr

estri

cted

inve

stm

ent e

arni

ngs

5,92

2

5,07

0

3,00

3

8,26

2

17,5

47

43,7

77

13

,953

5,68

8

1,

098

Tran

sfer

s2,

806

18

-

344

(500

)

61

11

0

-

-

Tota

l gov

ernm

enta

l act

iviti

es1,

098,

600

1,

107,

844

1,

195,

356

1,31

0,62

1

1,

423,

476

1,48

6,04

0

1,

552,

597

1,47

3,34

4

1,

415,

107

Bus

ines

s-ty

pe a

ctiv

ities

Unr

estri

cted

inve

stm

ent e

arni

ngs

1,26

1

1,02

7

561

1,25

7

637

19

8

1,21

9

1,

094

177

Tr

ansf

ers

-

(1

8)

-

(344

)

500

(6

1)

(1

10)

-

-

To

tal b

usin

ess-

type

act

iviti

es1,

261

1,

009

56

1

91

3

1,

137

137

1,

109

1,09

4

17

7

Tota

l prim

ary

gove

rnm

ent

1,09

9,86

1$

1,10

8,85

3$

1,19

5,91

7$

1,

311,

534

$

1,42

4,61

3$

1,

486,

177

$

1,55

3,70

6$

1,

474,

438

$

1,41

5,28

4$

Cha

nge

in N

et A

sset

sG

over

nmen

tal a

ctiv

ities

(35,

831)

$

(10,

963)

$

69,8

64$

11

4,68

1$

175,

601

$

81

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$

54,5

51$

(6

4,12

0)$

(259

,792

)$

B

usin

ess-

type

act

iviti

es7,

303

(6

,203

)

(5,4

98)

(7,7

39)

(14,

392)

(2

1,06

1)

(8,6

24)

3,88

6

(2

1,51

8)

Tota

l prim

ary

gove

rnm

ent

(28,

528)

$

(17,

166)

$

64,3

66$

10

6,94

2$

161,

209

$

60

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$

45,9

27$

(6

0,23

4)$

(281

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)$

Not

e: A

ccru

al b

asis

fina

ncia

l inf

orm

atio

n fo

r the

Cou

nty

as a

who

le is

ava

ilabl

e ba

ck to

200

2 on

ly, t

he y

ear G

AS

B S

tate

men

t 34

was

impl

emen

ted.

87

Bal

timor

e C

ount

y, M

aryl

and

Fund

Bal

ance

s of

Gov

ernm

enta

l Fun

dsLa

st N

ine

Fisc

al Y

ears

(mod

ified

acc

rual

bas

is o

f acc

ount

ing)

(dol

lars

exp

ress

ed in

thou

sand

s)

Fisc

al Y

ear

2002

2003

2004

2005

2006

2007

2008

2009

2010

Gen

eral

Fun

dR

eser

ved

28,6

09$

15,8

67$

53,5

18$

40

,836

$

29,5

50$

16

,120

$

12,2

59$

42

,095

$

29,5

01$

U

nres

erve

d99

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12

5,46

5

17

3,28

8

237,

379

27

9,66

5

271,

422

25

7,93

0

218,

865

20

2,98

8

Tota

l Gen

eral

Fun

d12

8,59

6

14

1,33

2

22

6,80

6

278,

215

30

9,21

5

287,

542

27

0,18

9

260,

960

23

2,48

9

All

othe

r gov

ernm

enta

l fun

dsR

eser

ved

7,92

3

9,

491

9,45

3

12

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15,2

81

15

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15,6

86

16

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19,9

42

U

nres

erve

d, re

porte

d in

:S

peci

al re

venu

e fu

nds

a b

1,15

2

3,

327

1,98

1

2,

010

7,40

4

16

0,89

9

4,09

9

20

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3,81

9

C

apita

l pro

ject

fund

s(1

0,84

0)

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1,68

9)

38

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(53,

149)

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1,61

4)

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(48,

410)

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8,52

1)

(209

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Tota

l all

othe

r gov

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enta

l fun

ds(1

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9

50

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427)

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8,92

9)

54,7

91

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8,62

5)

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597)

(1

85,5

93)

To

tal g

over

nmen

tal f

unds

126,

831

$

142,

461

$

277,

160

$

23

9,78

8$

240,

286

$

34

2,33

3$

241,

564

$

19

9,36

3$

46,8

96$

Not

e: D

ue to

cha

nges

in th

e C

ount

y's

fund

stru

ctur

e co

nnec

ted

with

the

impl

emen

tatio

n of

GA

SB

Sta

tem

ent 3

4, fu

nd b

alan

ce in

form

atio

n is

ava

ilabl

e ba

ck to

20

02 o

nly.

a In F

Y 2

007

the

Cou

nty

trans

ferr

ed $

114.

4 m

illio

n an

d $8

0 m

illio

n fro

m th

e G

ener

al F

und

and

the

Sel

f-Ins

uran

ce P

rogr

am In

tern

al S

ervi

ce F

und,

resp

ectiv

ely,

to

a P

ost E

mpl

oym

ent B

enef

it (O

PE

B) F

und

to a

ccum

ulat

e fu

nds

to m

eet f

utur

e an

nual

requ

ired

cont

ribut

ions

(AR

C) t

o an

OP

EB

Tru

st F

und.

b In

FY

2008

, the

fund

bal

ance

of $

156.

275

mill

ion

in th

e O

PE

B F

und

as o

f 6/3

0/07

, was

con

tribu

ted

to th

e O

PE

B T

rust

Fun

d.

88

Bal

timor

e C

ount

y, M

aryl

and

Cha

nges

in F

und

Bal

ance

s of

Gov

ernm

enta

l Fun

dsLa

st N

ine

Fisc

al Y

ears

(mod

ified

acc

rual

bas

is o

f acc

ount

ing)

(dol

lars

exp

ress

ed in

thou

sand

s)

Fisc

al Y

ear

2002

2003

2004

2005

2006

2007

2008

2009

2010

Rev

enue

s

Taxe

s1,

069,

383

$

1,09

7,47

8$

1,

169,

179

$

1,

263,

927

$

1,

364,

725

$

1,

441,

828

$

1,

499,

041

$

1,

518,

367

$

1,

414,

149

$

Li

cens

es a

nd p

erm

its4,

281

4,55

9

4,

865

4,85

9

5,

161

4,69

0

4,

545

4,17

1

3,

648

Inte

rgov

ernm

enta

l18

4,75

3

182,

388

17

5,64

3

18

9,61

5

18

8,21

6

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7,08

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20

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R

epay

men

t of l

oans

662

1,

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2

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2,

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2,45

0

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harg

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r ser

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10,9

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A

sses

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4

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9

1,

091

Fine

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4,

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4,69

5

4,

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8

3,

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4

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5,92

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5

M

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22,1

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Tota

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306,

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5

1,

393,

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1,

757,

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Expe

nditu

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Gen

eral

gov

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ent

57,6

45

58

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lic s

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227,

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P

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Cul

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leis

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16,9

41

17

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26,9

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14,0

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15

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11

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15

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P

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cont

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10,4

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16

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butio

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5,78

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6,01

9

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1,37

1

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15

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0,26

3

89,3

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96

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11

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P

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Prin

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Inte

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2,09

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R

etire

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uctio

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te n

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00

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540,

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627,

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Exc

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s(2

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timor

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aryl

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st N

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ears

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ified

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rual

bas

is o

f acc

ount

ing)

(dol

lars

exp

ress

ed in

thou

sand

s)

Fisc

al Y

ear

2002

2003

2004

2005

2006

2007

2008

2009

2010

Oth

er fi

nanc

ing

sour

ces

(use

s)B

onds

issu

ed-

135,

000

15

2,00

0

-

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11

1,00

0

14

0,00

0

-

17

4,97

0

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prem

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5,

232

12,6

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5,29

3

9,

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725

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antic

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note

s is

sued

185,

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15

2,00

0

161,

000

-

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90,0

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140,

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00

-

Ref

undi

ng b

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issu

ed-

141,

175

63

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73

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prem

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fund

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10

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7

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8,

151

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Cer

tific

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of p

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issu

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-

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-

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34

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f par

ticip

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2,

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1,72

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ase

agre

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nanc

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issu

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4

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3,

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gent

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8,77

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37

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Net

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alan

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14,7

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15,6

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134,

699

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372)

$

498

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10

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$

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)$

Deb

t ser

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as

a pe

rcen

tage

of

nonc

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endi

ture

s4.

01%

3.50

%3.

93%

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3.50

%3.

37%

3.70

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83%

Not

e: D

ue to

cha

nges

in th

e C

ount

y's

fund

stru

ctur

e co

nnec

ted

with

the

impl

emen

tatio

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GA

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tem

ent 3

4, re

venu

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d ex

pend

iture

info

rmat

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vaila

ble

back

to 2

002

only

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90

Bal

timor

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ount

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aryl

and

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eser

ved

Fund

Bal

ance

and

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enue

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biliz

atio

n R

eser

ve A

ccou

nt E

xpre

ssed

as

a Pe

rcen

tage

of G

ener

al F

und

Rev

enue

s an

d Tr

ansf

ers

In

Last

Ten

Fis

cal Y

ears

(bud

geta

ry b

asis

)(d

olla

rs e

xpre

ssed

in th

ousa

nds)

Unr

eser

ved

Rev

enue

Und

esig

nate

dFu

nd B

alan

ceSt

abili

zatio

nFu

nd B

alan

ceTo

tal

Unr

eser

ved

as a

% o

fR

eser

veU

ndes

igna

ted

PLU

S R

SRA

Fisc

alG

ener

al F

und

Fund

Gen

eral

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dA

ccou

ntFu

ndas

% o

f G.F

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arR

even

ues

Bal

ance

Rev

enue

s("

RSR

A")

Bal

ance

Rev

enue

s20

011,

199,

848

114,

941

9.6

63,2

7532

,203

8.0

2002

1,20

0,67

099

,987

8.3

65,0

0934

,978

8.3

2003

1,22

8,89

4

12

5,46

5

10

.266

,010

42

,423

8.8

2004

1,28

9,73

1

17

3,28

8

13

.466

,702

83

,444

11.6

2005

1,38

9,45

3

23

7,37

9

17

.168

,084

11

7,27

7

13

.320

061,

504,

492

279,

665

18.6

76,0

16

122,

523

13.2

2007

1,59

5,72

1

27

1,42

2

17

.079

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13

3,89

9

13

.420

081,

640,

051

257,

930

15.7

82,9

43

118,

530

12.3

2009

1,63

5,37

5

21

8,86

5

13

.484

,080

82

,703

10.2

2010

1,48

9,42

7

20

2,98

8

13

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10

9,23

1

13

.0

Acc

ount

to e

limin

ate

the

defic

it. F

unds

in th

e A

ccou

nt a

re n

ot to

be

used

for a

ny o

ther

pur

pose

exc

ept u

pon

the

reco

mm

enda

tion

of th

e C

ount

y E

xecu

tive

and

appr

oval

of a

maj

ority

plu

s on

e of

the

Cou

nty

Cou

ncil.

The

Gen

eral

Fun

d U

nres

erve

d Fu

nd B

alan

ce in

clud

es th

e R

even

ue S

tabi

lizat

ion

Res

erve

Acc

ount

(the

Acc

ount

) whi

ch is

a

desi

gnat

ion

of G

ener

al F

und

fund

bal

ance

to p

rovi

de a

fina

ncia

l cus

hion

for u

nant

icip

ated

dec

reas

es in

reve

nues

; prim

arily

in

terg

over

nmen

tal r

even

ues.

Effe

ctiv

e in

fisc

al y

ear 2

007,

reve

nues

in e

xces

s of

est

imat

es a

nd a

ny u

nexp

ende

d ap

prop

riatio

ns

at th

e cl

ose

of th

e fis

cal y

ear s

hall

be tr

ansf

erre

d to

the

Acc

ount

if th

e A

ccou

nt b

alan

ce d

oes

not e

xcee

d fiv

e pe

rcen

t of t

hecu

rren

t fis

cal y

ear G

ener

al F

und

budg

eted

reve

nue

afte

r int

eres

t is

cred

ited

to th

e A

ccou

nt. P

rior t

o FY

07, t

he A

ccou

nt b

alan

ceco

uld

not e

xcee

d fiv

e pe

rcen

t of t

he c

urre

nt fi

scal

yea

r Gen

eral

Fun

d bu

dget

unl

ess

appr

oved

by

the

Cou

nty

Exe

cutiv

e an

d C

ount

y C

ounc

il. I

nter

est w

hich

is n

ot s

ubje

ct to

the

five

perc

ent c

ap, w

as c

redi

ted

to th

e A

ccou

nt a

t the

clo

se o

f eac

h fis

cal

year

. If

a de

ficit

exis

ts in

the

Gen

eral

Fun

d at

the

end

of a

ny fi

scal

yea

r, th

e D

irect

or o

f Bud

get a

nd F

inan

ce s

hall

notif

y th

e C

ount

y E

xecu

tive

and

Cou

nty

Cou

ncil;

and

requ

est t

hat s

uffic

ient

mon

ies

to th

e ex

tent

ava

ilabl

e be

tran

sfer

red

from

the

91

Bal

timor

e C

ount

y, M

aryl

and

Gen

eral

Fun

d R

even

ues

Last

Ten

Fis

cal Y

ears

(bud

geta

ry b

asis

)(d

olla

rs e

xpre

ssed

in th

ousa

nds) In

tere

st o

nR

eim

burs

emen

tsLi

cens

esC

harg

esIn

vest

men

tsan

d O

ther

Fisc

alan

d In

ter-

for

Fine

s an

dan

dFi

nanc

ing

Year

Taxe

s (1

)Pe

rmits

Gov

ernm

enta

lSe

rvic

esFo

rfei

ture

sM

isce

llane

ous

Sour

ces

Tota

l20

011,

075,

733

3,70

271

,137

6,56

36,

581

29,6

506,

482

1,19

9,84

8

20

021,

069,

383

3,63

674

,771

9,55

06,

535

19,4

6517

,330

1,20

0,67

0

20

031,

097,

478

3,90

971

,241

8,66

54,

995

23,2

8319

,323

1,22

8,89

4

20

041,

169,

179

4,22

061

,043

9,80

14,

695

18,5

2722

,266

1,28

9,73

1

20

051,

263,

927

4,17

971

,962

9,71

94,

652

25,7

529,

262

1,38

9,45

3

20

061,

364,

725

4,48

578

,406

10,7

734,

374

32,5

679,

162

1,50

4,49

2

20

071,

441,

828

4,02

6

80

,647

10,5

82

4,

725

39,5

94

14

,319

1,59

5,72

1

20

081,

499,

041

3,86

4

78

,434

9,72

0

3,09

8

30

,750

15,1

44

1,

640,

051

2009

1,51

8,36

7

3,

539

70,4

24

8,

861

3,

407

23,3

20

7,

457

1,

635,

375

2010

1,41

4,14

9

3,

009

30,9

04

9,

497

3,

660

21,2

70

6,

938

1,

489,

427

(1)

See

the

Gen

eral

Fun

d Ta

x R

even

ues

by S

ourc

e ta

ble

for d

etai

l

92

Bal

timor

e C

ount

y, M

aryl

and

Gen

eral

Fun

d Ta

x R

even

ues

by S

ourc

e La

st T

en F

isca

l Yea

rs(b

udge

tary

bas

is)

(dol

lars

exp

ress

ed in

thou

sand

s)

Fisc

al

Year

Tota

l Tax

es

Gen

eral

Pr

oper

ty

Taxe

sIn

com

e Ta

xes

Oth

er L

ocal

Ta

xes

(1)

2001

1,07

5,73

3

526,

576

447,

175

101,

982

20

021,

069,

383

52

7,14

2

43

3,75

1

10

8,49

0

2003

1,09

7,47

8

547,

015

430,

224

120,

239

20

041,

169,

179

56

3,85

7

46

5,97

0

13

9,35

2

2005

1,26

3,92

7

588,

640

510,

788

164,

499

20

061,

364,

725

62

6,75

0

54

7,87

5

19

0,10

0

2007

1,44

1,82

8

663,

289

607,

932

170,

607

20

081,

499,

041

71

3,11

6

64

0,98

5

14

4,94

0

2009

1,51

8,36

7

765,

573

640,

176

112,

618

20

101,

414,

149

81

4,10

0

49

5,65

6

10

4,39

3

(1)F

isca

l yea

r 201

0 ot

her l

ocal

taxe

s in

clud

e: t

itle

trans

fer t

ax -

$41.

0 m

illio

n, re

cord

atio

n ta

x - $

20.0

mill

ion,

ele

ctric

ity -

$15.

5 m

illio

n, te

leph

one

tax

- $10

.2 m

illio

n, a

dmis

sion

s an

d am

usem

ent t

ax -

$5.4

mill

ion,

mot

el a

nd h

otel

occ

upan

cy ta

x - $

7.1

mill

ion,

911

fe

e - $

4.7

mill

ion

and

auto

trai

ler c

amp

tax

- $0.

5 m

illio

n.

93

Bal

timor

e C

ount

y, M

aryl

and

Gen

eral

Fun

d Ex

pend

iture

s an

d Tr

ansf

ers

by F

unct

ion

Last

Ten

Fis

cal Y

ears

(bud

geta

ry b

asis

)(d

olla

rs e

xpre

ssed

in th

ousa

nds)

Hea

lth

Cul

ture

Econ

omic

Paym

ents

and

and

and

toFi

scal

Gen

eral

Pu

blic

Pu

blic

H

uman

Leis

ure

Com

mun

ityD

ebt

Non

-C

ompo

nent

Inte

rfun

d Ye

arG

over

nmen

tSa

fety

Wor

ksSe

rvic

esSe

rvic

esD

evel

opm

ent

Serv

ice

Dep

artm

enta

l (1)

Uni

tsTr

ansf

ers

Tota

l20

0152

,593

198,

080

81,9

0627

,199

14,4

911,

119

56,1

2083

,357

590,

142

114,

380

1,21

9,38

720

0254

,046

211,

982

82,0

9227

,785

15,8

241,

284

57,0

5980

,989

614,

733

70,3

301,

216,

124

2003

55,8

7321

8,38

291

,215

28,1

9916

,333

1,26

352

,634

107,

322

626,

838

5,95

01,

204,

009

2004

56,6

5322

2,90

592

,438

28,8

0215

,635

1,37

860

,770

124,

207

631,

830

7,84

61,

242,

464

2005

58,4

8723

5,02

193

,018

29,7

8616

,764

1,61

663

,552

123,

972

651,

783

51,8

551,

325,

854

2006

62,0

8325

5,46

297

,276

31,7

7119

,002

1,70

861

,718

135,

403

679,

650

119,

105

1,46

3,17

820

0766

,769

275,

431

106,

890

33,2

6320

,416

1,77

663

,893

68,5

1470

3,31

326

4,44

11,

604,

706

2008

74,2

0230

4,40

011

2,96

235

,468

22,4

101,

758

68,9

9016

6,82

471

3,75

015

3,69

61,

654,

460

2009

74,8

1132

1,06

411

7,19

736

,521

24,0

142,

022

66,6

5514

4,55

374

3,66

714

5,71

91,

676,

223

2010

75,0

2632

7,43

213

6,38

937

,993

24,6

812,

104

70,7

8413

8,15

777

0,48

640

,550

1,62

3,60

2

(1)

Non

-Dep

artm

enta

l exp

endi

ture

s in

clud

e co

sts

incu

rred

for p

ensi

on p

lan

cont

ribut

ions

, soc

ial s

ecur

ity, w

orke

rs c

ompe

nsat

ion,

gen

eral

and

aut

o lia

bilit

y in

sura

nce,

em

ploy

ees

heal

th

and

life

insu

ranc

e an

d m

isce

llane

ous

prog

ram

s.

94

Bal

timor

e C

ount

y, M

aryl

and

Taxa

ble

Ass

esse

d Va

lue

and

Estim

ated

Act

ual V

alue

of T

axab

le P

rope

rty

Last

Ten

Fis

cal Y

ears

(dol

lars

exp

ress

ed in

thou

sand

s)

Rea

l Pro

pert

y (1

),(2)

,(3)

Pers

onal

Pro

pert

y (3

)

Fisc

al Y

ear

Ende

d Ju

ne 3

0R

esid

entia

l Pr

oper

tyC

omm

erci

al

Prop

ert y

Tota

l Rea

l Pr

oper

t yR

ailro

ad/U

tility

Pr

oper

t y

Oth

er

Bus

ines

s Pr

oper

t y

Tota

l Pe

rson

al

Prop

ert y

Tota

l Tax

able

A

sses

sed

Valu

e (2

)Es

timat

ed

Act

ual V

alue

2001

12,3

58,7

04

3,87

4,98

0

16

,233

,684

1,25

5,96

9

1,

602,

920

2,85

8,88

9

19

,092

,573

43,4

43,0

99

20

0231

,894

,624

9,

901,

502

41,7

96,1

26

1,

266,

979

1,64

8,27

7

2,

915,

256

44,7

11,3

82

44

,711

,382

2003

33,3

64,1

85

10,1

01,4

02

43,4

65,5

87

1,

232,

584

1,62

4,62

1

2,

857,

205

46,3

22,7

92

46

,322

,792

2004

35,3

08,4

28

10,1

80,3

99

45,4

88,8

27

1,

256,

859

1,59

0,12

3

2,

846,

982

48,3

35,8

09

48

,335

,809

2005

37,8

42,3

22

10,4

50,5

86

48,2

92,9

08

1,

282,

225

1,57

9,15

1

2,

861,

376

51,1

54,2

84

51

,154

,284

2006

42,2

99,9

63

10,8

94,1

55

53,1

94,1

18

1,

291,

619

1,61

9,85

1

2,

911,

470

56,1

05,5

88

56

,105

,588

2007

48,6

31,7

21

11,4

07,4

41

60,0

39,1

62

1,

351,

599

1,71

5,99

9

3,

067,

598

63,1

06,7

60

63

,106

,760

2008

56,8

63,4

50

12,4

82,2

21

69,3

45,6

71

1,

255,

594

1,81

2,24

0

3,

067,

834

72,4

13,5

05

72

,413

,505

2009

62,3

17,2

97

16,5

65,3

57

78,8

82,6

54

1,

257,

017

1,86

0,51

1

3,

117,

528

82,0

00,1

82

82

,000

,182

2010

67,2

85,0

85

18,9

77,8

45

86,2

62,9

30

1,

225,

048

1,88

5,52

8

3,

110,

576

89,3

73,5

06

89

,373

,506

Not

e:(1

)

(2)

Tax

exem

pt p

rope

rties

are

not

incl

uded

(3)

See

the

Pro

perty

Tax

Rat

es, D

irect

and

Ove

rlapp

ing

Gov

ernm

ents

tabl

e fo

r the

app

licab

le fi

scal

yea

r dire

ct ra

te a

pplie

d.

In fi

scal

yea

r 200

2 th

e S

tate

of M

aryl

and

inst

itute

d fu

ll ca

sh v

alue

for r

eal p

rope

rty a

sses

smen

ts w

hich

is 2

.5 ti

mes

the

amou

nt o

f th

e pr

evio

us y

ears

' ass

essm

ent f

igur

es.

95

Bal

timor

e C

ount

y, M

aryl

and

Prop

erty

Tax

Rat

esD

irect

and

Ove

rlapp

ing

Gov

ernm

ents

Last

Ten

Fis

cal Y

ears

Cou

nty

Dire

ct R

ates

Fisc

al

Year

Rea

lPe

rson

al20

012.

855

2.85

50

20

021.

115

2.78

75

20

031.

115

2.78

75

20

041.

115

2.78

75

20

051.

115

2.78

75

20

061.

115

2.78

75

20

071.

100

2.75

00

20

081.

100

2.75

00

20

091.

100

2.75

00

20

101.

100

2.75

00

Not

es:

(1)

Rat

es a

re p

er $

100

of a

sses

sed

valu

e.(2

)

(3)

Ther

e ar

e no

tax

limits

.(4

)D

ebt s

ervi

ce is

incl

uded

in th

e ta

x ra

te.

(5)

In fi

scal

yea

r 200

2 th

e S

tate

of M

aryl

and

inst

itute

d fu

ll ca

sh v

alue

for r

eal p

rope

rty

asse

ssm

ents

whi

ch is

2.5

tim

es th

e am

ount

of t

he p

revi

ous

asse

ssm

ent f

igur

es.

The

Cou

nty

redu

ced

the

tax

rate

in fi

scal

yea

r 200

2 to

40%

of t

he p

revi

ous

rate

s to

adj

ust f

or fu

ll ca

sh v

alue

.

Exc

ept f

or th

e S

tate

of M

aryl

and,

ther

e is

no

sepa

rate

taxi

ng a

utho

rity

that

ove

rlaps

the

Cou

nty

geog

raph

ical

ly.

96

Bal

timor

e C

ount

y, M

aryl

and

Prin

cipa

l Pro

pert

y Ta

xpay

ers

Cur

rent

Yea

r and

Nin

e Ye

ars

Ago

(dol

lars

exp

ress

ed in

thou

sand

s)

2010

2001

Taxp

ayer

Taxa

ble

Ass

esse

d Va

lue

Perc

enta

ge

of T

otal

Ta

xabl

e A

sses

sed

Valu

eTa

xpay

erTa

xabl

e A

sses

sed

Valu

e

Perc

enta

ge o

f To

tal T

axab

le

Ass

esse

d Va

lue

BG

E1,

027,

983

$

1.15

%B

GE

866,

941

$

4.

54%

Mer

ritt M

anag

emen

t Cor

p.41

3,06

6

0.46

%B

ell A

tlant

ic -

Mar

ylan

d36

6,97

3

1.92

%V

eriz

on36

0,70

3

0.40

%R

ouse

- Te

ache

rs P

rope

rties

, Inc

.12

1,55

0

0.64

%To

wso

n To

wn

Cen

ter A

ssoc

iate

s21

8,85

4

0.24

%B

ethl

ehem

Ste

el C

orp.

92,2

07

0.

48%

Wal

mar

t17

4,90

5

0.20

%M

errit

t, Le

roy

59,5

86

0.

31%

Oak

Cam

pus

Par

tner

s LL

C16

9,04

2

0.19

%C

omca

st59

,289

0.31

%IS

G16

5,09

1

0.18

%To

wso

n To

wn

Cen

ter A

ssoc

iate

s51

,679

0.27

%TR

P S

urbu

rban

163,

150

0.

18%

Tow

n &

Cou

ntry

51,0

39

0.

27%

Mar

ylan

d H

ealth

and

Hig

her E

duca

tion

145,

458

0.

16%

Not

tingh

am P

rope

rties

50,2

59

0.

26%

Com

cast

76,0

81

0.

09%

St.

Cha

rles

Ass

ocia

tes

LLC

45,5

08

0.

24%

2,91

4,33

3$

3.

26%

1,76

5,03

1$

9.

24%

Sou

rce:

Sta

te o

f Mar

ylan

d A

sses

smen

t File

s an

d B

altim

ore

Cou

nty

Offi

ce o

f Bud

get a

nd F

inan

ce T

ax F

iles

97

Bal

timor

e C

ount

y, M

aryl

and

Prop

erty

Tax

Lev

ies

and

Col

lect

ions

Last

Ten

Fis

cal Y

ears

(dol

lars

exp

ress

ed in

thou

sand

s)

Col

lect

ed w

ithin

the

Fisc

al Y

ear

of th

e Le

vyTo

tal C

olle

ctio

ns to

Dat

eFi

scal

Yea

r En

ded

June

30

Orig

inal

Ta

x Le

v yPr

ior Y

ear

Adj

uste

d Le

v yTo

tal A

djus

ted

Lev y

Am

ount

Perc

enta

ge o

f O

rigin

al L

evy

Col

lect

ions

in

Subs

eque

nt

Year

sA

mou

ntPe

rcen

tage

of

Orig

inal

Lev

y20

0153

0,55

9

(2

,437

)

528,

122

52

6,66

4

99.3

1,37

8

528,

042

99

.5

20

0253

2,85

6

(1

,874

)

530,

982

52

7,16

8

98.9

1,58

9

528,

757

99

.2

20

0354

9,09

4

(3

,876

)

545,

218

54

5,79

7

99.4

3,14

9

548,

946

99

.9

20

0456

8,64

2

(1

,914

)

566,

728

56

5,48

9

99.4

275

565,

764

99

.5

20

0559

4,41

3

(3

,317

)

591,

096

59

0,98

4

99.4

(798

)

59

0,18

6

99.3

2006

629,

732

(3,9

27)

62

5,80

5

627,

157

99

.6

53

1

62

7,68

8

99.7

2007

663,

836

(2,4

86)

66

1,35

0

661,

344

99

.6

12

9

66

1,47

3

99.6

2008

711,

785

(1,9

55)

70

9,83

0

709,

242

99

.6

86

9

71

0,11

1

99.8

2009

763,

191

(1,4

61)

76

1,73

0

758,

977

99

.4

88

6

75

9,86

3

99.6

2010

808,

956

(881

)

80

8,07

5

805,

384

99

.6

1,

985

80

7,36

9

99.8

98

Bal

timor

e C

ount

y, M

aryl

and

Rat

ios

of O

utst

andi

ng D

ebt b

y Ty

peLa

st T

en F

isca

l Yea

rs(d

olla

rs e

xpre

ssed

in th

ousa

nds)

Gov

ernm

enta

l Act

iviti

esB

usin

ess-

Type

Act

iviti

es

Fisc

al

Year

Gen

eral

O

blig

atio

n D

ebt

Cer

tific

ates

of

Part

icip

atio

nPu

rcha

se

Agr

eem

ents

Loan

Pa

yabl

e

Gen

eral

O

blig

atio

n D

ebt

Cer

tific

ates

of

Part

icip

atio

nPu

rcha

se

Agr

eem

ents

Tota

l Prim

ary

Gov

ernm

ent

Perc

enta

ge o

f Pe

rson

al

Inco

me

(1)

Per C

apita

(1

) (2)

2001

444,

485

-

18,2

28

-

405,

207

-

2,

031

869,

951

3.

02

1,

141.

27

2002

562,

355

52

,000

12,0

91

-

361,

181

-

1,

556

989,

183

3.

32

1,

287.

92

2003

670,

390

51

,385

7,21

6

-

39

4,89

2

-

1,05

7

1,

124,

940

3.

68

1,

453.

56

2004

791,

005

87

,605

3,23

6

-

42

1,37

9

4,00

0

545

1,30

7,77

0

4.00

1,67

9.19

20

0575

2,24

5

78,0

95

66

5

-

405,

051

3,

600

10

7

1,

239,

763

3.

68

1,

586.

49

2006

710,

335

69

,520

29

3,75

5

433,

304

3,

200

-

1,22

0,14

3

3.41

1,55

3.93

20

0775

7,82

5

59,6

40

-

3,68

1

535,

035

2,

800

-

1,35

8,98

1

3.68

1,72

9.36

20

0885

0,40

0

47,3

10

-

3,60

1

722,

041

2,

400

-

1,62

5,75

2

4.23

2,06

9.39

20

0979

5,37

5

76,1

00

-

3,51

5

692,

248

4,

000

-

1,57

1,23

8

3.99

1,97

9.68

20

1091

6,35

0

68,4

50

-

3,42

2

765,

337

3,

400

-

1,75

6,95

9

4.30

2,19

1.41

(1)S

ee th

e D

emog

raph

ic a

nd E

cono

mic

Sta

tistic

s sc

hedu

le fo

r per

sona

l inc

ome

and

popu

latio

n da

ta.

(2)E

xpre

ssed

in d

olla

rs

99

Bal

timor

e C

ount

y. M

aryl

and

Rat

ios

of C

onso

lidat

ed P

ublic

Impr

ovem

ent (

CPI

) Gen

eral

Obl

igat

ion

(GO

) Deb

t to

Estim

ated

Act

ual V

alue

of P

rope

rty

and

CPI

GO

Deb

t Per

Cap

itaLa

st T

en F

isca

l Yea

rs(d

olla

rs e

xpre

ssed

in th

ousa

nds)

Fisc

al

Year

Estim

ated

Po

pula

tion

(1)

Estim

ated

Act

ual

Valu

e of

Rea

l &

Pers

onal

Pro

pert

yC

PI G

O

Deb

t (2)

Per

cent

of C

PI

GO

Deb

t to

Estim

ated

Act

ual

Valu

e of

Pro

pert

y

CPI

GO

D

ebt p

er

Cap

ita (3

)20

0176

2,26

9

43,4

43,0

99

44

4,48

5

1.

0258

3.11

20

0276

8,04

7

44,7

11,3

82

56

2,35

5

1.

2673

2.19

20

0377

3,92

1

46,3

22,7

92

67

0,39

0

1.

4586

6.23

20

0477

8,81

0

48,3

35,8

09

79

1,00

5

1.

641,

015.

66

20

0578

1,45

2

51,1

54,2

84

75

2,24

5

1.

4796

2.62

20

0678

5,20

0

56,1

05,5

88

71

0,33

5

1.

2790

4.65

20

0778

5,83

0

63,1

06,7

60

75

7,82

5

1.

2096

4.36

20

0878

5,61

8

72,4

13,5

05

85

0,40

0

1.

171,

082.

46

20

0979

3,68

4

82,0

00,1

82

79

5,37

5

0.

971,

002.

13

20

1080

1,75

0

89,3

73,5

06

91

6,35

0

1.

031,

142.

94

Not

es:

(1)

U.S

. Bur

eau

of th

e C

ensu

s, P

opul

atio

n E

stim

ates

Bra

nch

(2)

The

Cou

nty

has

no re

sour

ces

rest

ricte

d to

repa

ying

the

prin

cipa

l of o

utst

andi

ng d

ebt.

(3)

Exp

ress

ed in

dol

lars

100

Bal

timor

e C

ount

y. M

aryl

and

Rat

ios

of M

etro

polit

an D

istr

ict (

MD

) Gen

eral

Obl

igat

ion

(GO

) Deb

t to

Estim

ated

A

ctua

l Val

ue o

f Pro

pert

y an

d M

D G

O D

ebt P

er C

apita

Last

Ten

Fis

cal Y

ears

(dol

lars

exp

ress

ed in

thou

sand

s)

Fisc

al

Year

Estim

ated

Po

pula

tion

(1)

Estim

ated

Act

ual

Valu

e of

Rea

l &

Pers

onal

Pro

pert

y M

D G

O

Deb

t (2)

Perc

ent o

f MD

GO

D

ebt t

o Es

timat

ed

Act

ual V

alue

of

Prop

erty

MD

GO

Deb

t pe

r Cap

ita (3

)20

0176

2,26

9

38

,652

,056

405,

207

1.05

531.

58

20

0276

8,04

7

39

,676

,108

361,

181

0.91

470.

26

20

0377

3,92

1

40

,974

,427

394,

892

0.96

510.

25

20

0477

8,81

0

42

,692

,467

421,

379

0.99

541.

05

20

0578

1,45

2

44

,812

,397

405,

051

0.90

518.

33

20

0678

5,20

0

49

,121

,179

433,

304

0.88

551.

84

20

0778

5,83

0

55

,405

,898

535,

035

0.97

680.

85

20

0878

5,61

8

63

,754

,867

722,

041

1.13

919.

07

20

0979

3,68

4

72

,114

,666

692,

248

0.96

872.

20

20

1080

1,75

0

78

,333

,295

765,

337

0.98

954.

58

Not

es:

(1)

U.S

. Bur

eau

of th

e C

ensu

s, P

opul

atio

n E

stim

ates

Bra

nch

(2)

The

Cou

nty

has

no re

sour

ces

rest

ricte

d to

repa

ying

the

prin

cipa

l of o

utst

andi

ng d

ebt.

(3)

Exp

ress

ed in

dol

lars

101

Bal

timor

e C

ount

y, M

aryl

and

Lega

l Deb

t Mar

gin

Info

rmat

ion

Last

Ten

Fis

cal Y

ears

(dol

lars

exp

ress

ed in

thou

sand

s)

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Con

solid

ated

Pub

lic Im

prov

emen

t (C

PI)

Gen

eral

Obl

igat

ion

Deb

tA

sses

sed

valu

eR

eal p

rope

rty (1

)40

,584

,210

$

41,7

96,1

26$

43

,465

,587

$

45,4

88,8

27$

48

,292

,908

$

53,1

94,1

18$

60

,039

,162

$

69,3

45,6

71$

78

,882

,654

$

86,2

62,9

30$

P

erso

nal p

rope

rty2,

858,

889

2,

915,

256

2,

857,

205

2,

846,

982

2,

861,

376

2,

911,

470

3,

067,

598

3,

067,

834

3,

117,

528

3,

110,

576

To

tal a

sses

sed

valu

e43

,443

,099

44,7

11,3

82

46

,322

,792

48,3

35,8

09

51

,154

,284

56,1

05,5

88

63

,106

,760

72,4

13,5

05

82

,000

,182

89,3

73,5

06

Deb

t lim

it (4

% o

f tot

al a

sses

sed

valu

e) (3

)4,

344,

310

4,

471,

138

4,

632,

279

4,

833,

581

5,

115,

428

5,

610,

559

2,

524,

270

2,

896,

540

3,

280,

007

3,

574,

940

Deb

t app

licab

le to

lim

it:C

onso

lidat

ed p

ublic

impr

ovem

ent b

onds

304,

010

320,

585

419,

110

538,

085

507,

035

473,

140

550,

070

651,

290

574,

235

702,

565

Pen

sion

liab

ility

fund

ing

113,

475

106,

770

99,2

80

91

,920

84,2

10

76

,195

67,7

55

59

,110

46,1

40

38

,885

CP

I com

mer

cial

pap

er n

otes

27,0

00

13

5,00

0

15

2,00

0

16

1,00

0

16

1,00

0

16

1,00

0

14

0,00

0

14

0,00

0

17

5,00

0

17

4,90

0

To

tal d

ebt a

pplic

able

to d

ebt l

imit

444,

485

562,

355

670,

390

791,

005

752,

245

710,

335

757,

825

850,

400

795,

375

916,

350

Lega

l deb

t mar

gin

3,89

9,82

5$

3,90

8,78

3$

3,96

1,88

9$

4,04

2,57

6$

4,36

3,18

3$

4,90

0,22

4$

1,76

6,44

5$

2,04

6,14

0$

2,48

4,63

2$

2,65

8,59

0$

Met

ropo

litan

Dis

tric

t Gen

eral

Obl

igat

ion

Deb

tA

sses

sed

valu

e (2

)R

eal p

rope

rty (1

)36

,108

,454

$

37,0

89,1

60$

38

,447

,111

$

40,1

77,8

78$

42

,305

,762

$

46,5

72,1

48$

52

,712

,637

$

61,0

53,8

61$

69

,372

,971

$

75,6

06,9

65$

P

erso

nal p

rope

rty2,

543,

602

2,

586,

948

2,

527,

316

2,

514,

589

2,

506,

635

2,

549,

031

2,

693,

261

2,

701,

006

2,

741,

695

2,

726,

330

To

tal a

sses

sed

valu

e38

,652

,056

39,6

76,1

08

40

,974

,427

42,6

92,4

67

44

,812

,397

49,1

21,1

79

55

,405

,898

63,7

54,8

67

72

,114

,666

78,3

33,2

95

Deb

t lim

it (3

.2%

of t

otal

ass

esse

d va

lue)

(4)

3,09

2,16

4

3,17

4,08

9

3,27

7,95

4

3,41

5,39

7

3,58

4,99

2

3,92

9,69

4

1,77

2,98

9

2,04

0,15

6

2,30

7,66

9

2,50

6,66

5

Deb

t app

licab

le to

lim

it:M

etro

polit

an D

istri

ct (M

D) b

onds

307,

207

296,

181

346,

892

382,

379

366,

051

394,

304

475,

035

662,

041

585,

648

658,

837

MD

com

mer

cial

pap

er n

otes

98,0

00

65

,000

48,0

00

39

,000

39,0

00

39

,000

60,0

00

60

,000

106,

600

106,

500

Tota

l deb

t app

licab

le to

deb

t lim

it40

5,20

7

36

1,18

1

39

4,89

2

42

1,37

9

40

5,05

1

43

3,30

4

53

5,03

5

72

2,04

1

69

2,24

8

76

5,33

7

Le

gal d

ebt m

argi

n2,

686,

957

$

2,

812,

908

$

2,

883,

062

$

2,

994,

018

$

3,

179,

941

$

3,

496,

390

$

1,

237,

954

$

1,

318,

115

$

1,

615,

421

$

1,

741,

328

$

Not

es:

(1)

(2)

Ass

esse

d va

lue

of p

rope

rty in

the

Met

ropo

litan

Dis

trict

.(3

)Th

e C

ount

y G

ener

al B

ond

debt

lim

it on

ass

esse

d va

lue

of re

al p

rope

rty w

as c

hang

ed fr

om 1

0% to

4%

beg

inni

ng in

FY

200

7.(4

)Th

e M

etro

polit

an D

istri

ct d

ebt l

imit

on a

sses

sed

valu

e of

real

pro

perty

was

cha

nged

from

8%

to 3

.2%

beg

inni

ng in

FY

200

7.

The

asse

ssed

val

ue o

f rea

l pro

perty

for f

isca

l yea

rs 1

999

to 2

001

has

been

rest

ated

for c

ompa

rativ

e pu

rpos

es d

ue to

th

e S

tate

cha

ngin

g re

al p

rope

rty a

sses

smen

ts fr

om 4

0% to

100

% o

f the

full

cash

val

ue in

fisc

al y

ear 2

002.

102

Bal

timor

e C

ount

y, M

aryl

and

Dem

ogra

phic

and

Eco

nom

ic S

tatis

tics

Last

Ten

Fis

cal Y

ears

Fisc

al

Year

Estim

ated

Po

pula

tion

(1)

Tota

l Per

sona

l In

com

e (e

xpre

ssed

in

thou

sand

s)

Per C

apita

Pe

rson

al

Inco

me

(2)

Med

ian

Age

(3)

Educ

atio

n Le

vel i

n Ye

ars

of F

orm

al

Scho

olin

g (3

)

Scho

ol

Enro

llmen

t (4

)U

nem

ploy

men

t R

ate

(5)

2001

762,

269

28

,777

,992

37

,753

37

.714

.610

7,13

3

4.3

2002

768,

047

29

,776

,382

38

,769

37

.714

.810

7,32

2

4.6

2003

773,

921

30

,604

,261

39

,544

37

.814

.810

8,60

4

4.9

2004

778,

810

32

,663

,669

41

,940

37

.914

.810

8,79

2

4.7

2005

781,

452

33

,681

,357

43

,101

37

.814

.710

8,01

5

4.5

2006

785,

200

35

,764

,674

45

,548

37

.814

.810

7,38

6

4.1

2007

785,

830

36

,894

,937

46

,950

37

.914

.910

5,33

0

3.7

2008

785,

618

38

,431

,368

48

,919

38

.014

.910

4,71

4

4.5

2009

793,

684

39

,411

,966

49

,657

38

.015

.010

3,64

3

7.9

2010

801,

750

40

,905

,988

51

,021

38

.415

.010

3,83

2

7.8

Not

es:

(1)

U.S

. Bur

eau

of th

e C

ensu

s, P

opul

atio

n E

stim

ates

Bra

nch.

(2

)

(3)

Bal

timor

e C

ount

y O

ffice

of P

lann

ing

(4)

Bal

timor

e C

ount

y B

oard

of E

duca

tion

(5)

Mar

ylan

d D

epar

tmen

t of L

abor

and

Lic

ensi

ng R

egul

atio

n

Dat

a ex

tract

s pr

epar

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Acc

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Rec

ords

109

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Baltimore County Marylandmsa.maryland.gov/megafile/msa/speccol/sc5300/sc... · 16.12.2012 · The Reporting Entity And Its Services The County is a corporate polity which performs